Loan Modifications Affect the Mortgage Ecosystem

Source: Scotsman Guide — 

The Consumer Financial Protection Bureau (CFPB) has been closely monitoring the loan default situation and is taking various steps in a bid to prevent a wave of foreclosures that could result from borrowers exiting their mortgage forbearance plans.

For many borrowers affected by the COVID-19 pandemic, the current deadline to exit their forbearance plan is June 30, 2021, after which the foreclosure moratoriums on federally backed mortgages could end. Experts believe there could be a surge of loan delinquencies once the moratoriums expire. Many borrowers who are currently in forbearance are at least 120 days behind on their payments, according to the CFPB.