NHRC recently conducted a survey of our network of HUD-approved housing counseling agencies to learn more about what mortgage servicing issues counselors are seeing in the field. We aren’t planning to do a formal, but have circulated the responses to give a snapshot. (If you would like to see the responses, please send a request by email to firstname.lastname@example.org.)
Fifty-five counselors participated and their responses were thoughtful and specific. Lost documents and repeated submissions were frequent complaints. Difficulty reaching single point of contacts was also a common concern. Transfers continue to be a problem. Successors-in-interest was also a problem. A number of counselors were concerned about the affordability of modifications or an inability to get a modification. Requiring actual late payment rather than imminent default came up repeatedly.
On improving the system, counselors would like to work more smoothly with servicers and are baffled why so many servicers do not treat counselors like the helpful professionals they are. There is also ongoing frustration that many servicers do not provide funding for the delinquency work, and with the end of NFMC funding, more agencies will leave the field without a viable funding model.