The federal government shutdown may be ending soon, but for many borrowers — and the servicers helping them — the challenges are far from over.
In a recent National Mortgage News article by Brad Finkelstein, I shared how DLS Servicing has been supporting clients through a surge in borrower hardship requests. Since early October, we’ve seen a 290% increase in forbearance plan requests, especially among FHA borrowers.
As I told Brad:
“It’s not only government workers feeling the pinch. It also has hurt those who work for companies whose income is derived from the government directly or from government employee activities. During past shutdowns, the government employees are paid their back wages, but those working for other entities that are affected do not.”
Shutdowns like this one have a ripple effect across the entire housing ecosystem. Once the government reopens, servicers will need to act fast to reconnect with borrowers, verify hardship, and help them access the loss mitigation options that can restore their loans to good standing.
At DLS Servicing, we’re focused on helping our clients prepare for that next phase. By maintaining open communication, using accurate data, and acting quickly once paychecks resume, servicers can turn temporary setbacks into long-term stability for their borrowers.
If your servicing team needs assistance managing post-shutdown forbearance and loss mitigation work, or wants to simplify borrower outreach with WaterfallCalc+, we’re here to help. Let’s talk.
Read the full article here:
How Some Mortgage Servicers Have Handled Shutdown Fallout — National Mortgage News
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