Rolling with the punches

Let’s take a poll.

Did anyone’s business plan forecast an unemployment rate of nearly 20% for the month of May? If you did, you probably won the lottery at least 10 times in the last two years and racked up airline platinum status with your winning trips to Vegas. It’s completely unfathomable where we are today, but yet here we are – and we’re making the best of it.

We continue to hear questions and comments about consumer forbearance requests and its impact on the mortgage credit report. As part of the CARES Act, the FCRA was amended to limit the information reported by a mortgage servicing furnisher. Consumers must be aware of what they’re signing when they enter a forbearance agreement and how their credit history will appear if they were behind in payments prior to entering the forbearance agreement.

Additionally, a consumer with a government-backed loan cannot have their credit history negatively impacted by a loan entering forbearance. Also, FHFA updated guidelines allowing consumers with GSE loans to refinance within three months of exiting forbearance, but only following three consecutive months of payments following their exit from forbearance.

S1 continues to complete nearly 80% of all verification requests within 24 hours or less. This record turn time is a significant advantage to our clients. Many originators are requesting credit supplements just prior to closing to confirm a clean report. Additionally, VOE requests are pushing nearer to closing to ensure a clean closing.

I invite you to drop me a line at cknuth@srv1st.com . My best to you and your team!

Stay safe everyone,

Curt

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Curtis Knuth,

CEO | Service 1st