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Remember the CARES Act forbearance program that was created to prevent for people whose income was affected by the COVID-19 pandemic? Well, the pandemic may officially be over, but the program lives on...although not as it was originally designed.

According to the Mortgage Bankers Association, only 7.9% of the approximately 115,000 borrowers in the forbearance program are there due to COVID-related issues; 75.9% are there due to "temporary hardships;" and another 16.2% due to extreme weather events. Are servicers now using the program as a catch-all for delinquent borrowers? Perhaps another reason that foreclosure activity is as low as it is today.

Even with low foreclosure counts, servicers need legal support, and the Hello Solutions Network is here to help. Let us know how we can help you!

After Nearly Two Years, Forbearance Volumes Rise - The MortgagePoint For the first time since October 2022, the MBA reports that the number of loans in forbearance increased in June, as an uptick in severe weather events impacted multiple regions of the country and impaired borrowers’ ability to pay their mortgages.

🌟Wow! What an incredible experience our VP of Client Success, Dennette Berrios, had at the American Legal & Financial Network "ALFN" ANSWERS Conference! 🎉🌟💡

We're excited to announce that Dennette Berrios has joined Hello Solutions as Vice President of Client Success. Dennette brings nearly 20 years of experience in the default servicing industry, having worked for a number of law firms, and for mortgage servicers such as Rushmore Loan Management, PENNYMAC, and Chase.

Dennette will be representing the Hello Network of law firms at this week's ALFNANSWERS Conference in Beaver Creek, Colorado. If you're attending, make sure to find Dennette and say Hello!

New guidelines proposed for servicers by the Consumer Financial Protection Bureau (CFPB) are intended to help more financially-distressed borrowers avoid . The timing is a little ironic, considering that foreclosure activity today is running at less than 50% of historic averages, but the intention is certainly good.

Reducing the amount of paperwork required and streamlining communications are two pieces of the proposal, and would be welcomed by both servicers and borrowers, and may help do what the CFPB is trying to accomplish.

The Hello Solutions Network of law firms across the country can help default servicers stay compliant to regulatory changes like these. Let us know if we can help you with your legal needs.

New CFPB Proposal Increases Foreclosure Protections - The MortgagePoint New rule would require mortgage servicers to assist homeowners before foreclosing, giving servicers more flexibility by reducing paperwork, and improving communication with at-risk homeowners.

Anyone still waiting for the rumored surge of coming out of the government's forbearance program probably hasn't been paying very close attention.

According to the Mortgage Bankers Association, the number of borrowers still in forbearance is down to 105,000 (out of over 50 million active mortgages), and have worked out successful exits with over 8.2 million other borrowers since the program started in 2020. The overwhelming majority of those who've exited the forbearance program continue to make on time payments. There is no wave of foreclosures coming from the forbearance program: according to ATTOM, May foreclosure activity is actually down from last year.

But if you're a servicer or investor who's looking for top notch legal support for those loans that are delinquent or in default, the Hello Solutions Network can help virtually anywhere in the country. Let us know how we can help you!

How Are Servicing Portfolios Performing? - The MortgagePoint

According to a recent report from the Mortgage Bankers Association, the annual cost of servicing a non-performing loan increased in 2023 from $1,808 to $1,857 - the third consecutive year costs increased since bottoming out during the moratorium. And the longer it takes to foreclose on a defaulted loan, the more it costs to do so.

Are your attorneys doing everything they can to shorten the length of time it takes to execute a foreclosure while still complying with regulations and frequently-changing legal directives?

The law firms in the Hello Solutions Network typically process foreclosures in less than half the time allowed in Fannie Mae's published guidelines, saving our servicer and investor clients time and money, without sacrificing quality or the personal attention our clients deserve.

Let's find out how much time, money, and effort our law firms can save you! Just reach out and say Hello!

New Flex Modification Policies from both Freddie Mac and Fannie Mae should help financially-distressed borrowers avoid (at least temporarily), but will put enormous pressure on servicers to find ways to cut monthly P&I payments by at least 20%. The new flex rules allow below-market interest rates; extension of loan terms for up to 480 months; and principle forbearance as required to lower the monthly payment.

The Hello Solutions Network is here to help you meet your servicing challenges with high quality legal support across the country. Let us know how we can help you.

GSEs Revise Flex Modification Policies - The MortgagePoint In order to further accommodate borrowers facing hardship, the GSEs are enhancing their modification programs by allowing payment reductions.

As President Harry S. Truman said in an address to the nation in 1945, "Our debt to the heroic men and valiant women in the service of our country can never be repaid. They have earned our undying gratitude. America will never forget their sacrifices."

Please join the Hello Solutions team on this Memorial Day to ensure that those sacrifices are not forgotten, and those who gave their all to ensure our way of life are always remembered.

The Financial Stability Oversight Council (FSOC) issued a report discussing the state of servicing, pointing out that as of the end of 2022, non-bank mortgage companies (NMCs) issued 2/3 of all mortgages, and handled 54% of all servicing - both record highs, and both numbers that probably increased in 2023.

The report details some of the risks involved with a such a heavy reliance on NMCs, and calls for more oversight from state regulators, and the establishment of an NMC-funded liquidity vehicle that can be tapped in the event an NMC goes bankrupt or faces imminent financial failure.

Industry leaders, including Robert Broeksmit of the Mortgage Bankers Association urge caution, noting that servicers are already highly regulated, and layering on more regulatory and compliance requirements "will add significant cost and complexity," which could lead to fewer companies interested in servicing loans, and add to costs incurred by borrowers.

Definitely an industry discussion worth following!

FSOC Puts Mortgage Servicing Trends Under the Microscope - The MortgagePoint

A mixed bag in the Q1 2024 Report from ATTOM: Foreclosure starts are up modestly - both quarter-over-quarter and year-over-year; but bank repossessions, up 7% from last quarter, are down a whopping 20% from a year ago.

March numbers are similarly mixed: foreclosure starts are up 3% from February, while repossessions are down by 20%. This looks like a pattern that may continue to repeat itself for the rest of the year, as borrowers find ways to exit the foreclosure process before the auction, and investors gobble up any properties that make it that far.

Whichever way these foreclosure trends go, the Hello Solutions Network can provide top notch legal support for default servicers and investors across the country. Let us know how we can help you!

An important announcement from the U.S. Department of Veterans Affairs about its new prevention program for VA loans. The Veterans Affairs Servicing Purchase (VASP) program is designed to assist veterans experiencing severe financial hardship. The VASP program is scheduled to roll out on May 31st, 2024, the same day as the VA's extended foreclosure moratorium is scheduled to end.

It's good to see this kind of proactive support from the VA for veterans and their families. Mortgage servicers need to get up to speed quickly on the program details to ensure that all borrowers who qualify for VASP are able to benefit from it.

The law firms in the Hello Solutions Network are here to provide legal support to default servicers and investors across the country for VA loans and virtually every other type of mortgage. Let us know how we can help you!

VA Launches New Foreclosure Prevention Initiative - The MortgagePoint New program will assist 40,000-plus veterans to avoid foreclosure and adjust their monthly payments in order to remain in their homes.

Hello Solutions Founder & CEO Leisha Delgado will be attending the ALFN IDEA Summit in Dallas on May 1 & 2.

Our company and our national Network of law firms all support Inclusion, Diversity, Equity & Awareness. If you're going to be at the summit, let's say Hello!

Hello Solutions Founder & CEO Leisha Delgado is looking forward to the upcoming ALFN WILLPOWER event - the 7th annual Women in Legal Leadership summit on May 1st in Dallas.

If you're planning to attend, let's say Hello!

For more information on the event, or to register, click here: https://www.alfn.org/ev_calendar_day.asp?date=5/1/2024&eventid=246

Join Hello Solutions and several members of the Hello Solutions Network at the upcoming Legal League Spring Servicer Summit, April 29-30 in Dallas. Should be a great event with timely, important content, and speakers from Fannie Mae, Freddie Mac, U.S. Department of Veterans Affairs, Mr. Cooper, Carrington Mortgage Services, Cenlar FSB, Flagstar Bank, BSI Financial Services, Bank of Oklahoma, Fay Financial and more!

Registration info here: https://fivestarglobal.swoogo.com/legalleaguespringsummit_2024/register_now

Or contact us for an invitation to the event.

At Hello Solutions, we've been blessed to work with some of the best, most knowledgeable, most responsive law firms across the country in the default servicing industry.

And we're delighted to congratulate Anna Lin, Peter Roach, Nicholas Perciballi and the team at Roach & Lin for being part of our Network for the past six years! We value our relationship, and look forward to many more years working together.

If you're a default servicer or investor in need of excellent legal support in the State of New York, reach out and say Hello!

delinquency rates increased for the second consecutive quarter according to a report issued by the Mortgage Bankers Association this week. All stages of loan delinquency increased: 30-day, 60-day and 90+ day all went up. But activity actually declined slightly.

This news comes just in time for the MBA's Mortgage Servicing Conference, where Hello Solutions and many of the law firms in our national network will be in attendance, and happy to discuss how we can meet the legal needs of default servicers, and help process foreclosures in a more timely, efficient manner. Let's connect and see if we can lighten your load as delinquencies increase.

Mortgage Delinquencies Rise for Second Consecutive Quarter - The Mortgage Point The MBA’s Q4 analysis of delinquent mortgages found that student loan payments, holiday spending, and other forms of consumer debt did not keep pace with savings, and borrowers fell behind to close out the year.

If you're attending the upcoming Mortgage Bankers Association Servicing Conference, let's find some time to say Hello!

Leisha Delgado, Rick Sharga, and David Mulkay will be on hand, along with many of the managing partners from the law firms in the Hello Solutions Network, ready to provide high quality legal support for default servicers and investors across the country.

Have coverage gaps in certain markets? Looking to upgrade from non-performing firms? Let's meet in Orlando!

ATTOM's year-end report confirmed what we've seen in the Hello Solutions Network across the country: a modest increase in default activity, but volume still well off from pre-COVID numbers.

The ATTOM report showed a 10% increase in foreclosure activity compared to 2022, which was still off by 28% from 2019. Foreclosure starts are back to about 80% of pre-pandemic levels, which means default servicers are seeing an increase in early-stage foreclosure activity.

Our Network of attorney firms provides high quality support for , and proceedings for default servicers and investors across the country. Let us help you make sure you have the resources you need to properly handle what's likely to be a higher number of foreclosures in 2024.

2023 U.S. Foreclosure Activity Snapshot ATTOM has released its Year-End 2023 U.S. Foreclosure Market Report, which revealed that foreclosure...

Will an uptick in commercial bankruptcies lead to an increase in commercial defaults and foreclosures in 2024? The Hello Solutions Network is here to help, providing high quality legal support for commercial foreclosures across the country.

Commercial Bankruptcies Spiked 70% Last Year According to a new monthly bankruptcy filings report covering the calendar year 2023 published by Ep...

A mixed bag in the "first look" at November lending from ICE. delinquencies edged up ever-so-slightly, but activity declined. Even the higher delinquency numbers remain below pre-pandemic levels at about 3.39%.

Trends for mortgage servicers to keep an eye on? An uptick in seriously delinquent loans (90+ days) and higher levels of delinquencies in the FHA portfolio. Both of these could lead to higher levels of default after the holiday foreclosure moratoria expire.

The Hello Solutions Network provides high quality legal support for default servicers and investors across the country. Let us know how we can help you!

U.S. Delinquency Rate Ticked Up in November Intercontinental Exchange, Inc. (ICE), has released the following “First Look” at November 2023 mont...

With gratitude for all of the blessings we've received in 2023, we wish everyone all the joy, peace, and love that the holidays bring, and a happy, healthy, and prosperous 2024!

During the season, please enjoy some holiday music with our Hello Solutions playlist. https://open.spotify.com/playlist/2QqfUzjSiY3VZtYnAQEDL7?si=677adb949d5144b1&nd=1&dlsi=8a076b243dc44330

We're blessed to work with some of the best attorneys - and finest people - in the default servicing industry.

Congratulations to Michelle Garcia Gilbert and the team at the Gilbert Garcia Group - Attorneys at Law on your anniversary as members of the Hello Solutions Network! Looking forward to continuing to work with you as you provide high quality default servicing legal support to servicers and investors in the State of Florida.

We're blessed to have some of the best law firms - and some of the best legal minds - in the default servicing industry in the Hello Solutions Network.

Two of our members were published in the November issue of the ALFN Angle. Blake Strautins from Kluever Law Group, LLC penned the State Snapshot for Illinois with an article on the state easing its statewide foreclosure notification guidelines. And Michelle Garcia Gilbert from Gilbert Garcia Group - Attorneys at Law wrote the Florida State Snapshot, which discussed the state reducing its estoppel deadlines to 10 days. Two well-written articles with a lot of important, useful information. You can find them here:https://www.alfn.org/Files/ANGLE/2023_ANGLE_Fall.pdf

Our Network provides high quality legal support for default servicers and investors across the country from industry leaders like Blake and Michelle. Let us know how we can help you!

While delinquencies on residential remain lower than normal, and activity is still only running at about 60% of 2019 levels, there may be some trouble brewing in the commercial real estate market.

According to a new report from the Mortgage Bankers Association, delinquency rates are up across the board in the CRE market - bank loans, insurance company investments, Fannie Mae and Freddie Mac portfolios, and CMBS loans. Definitely a troubling trend for mortgage servicers who handle commercial loans.

Law firms in the Hello Solutions Network are equally adept at providing support for residential and commercial loans. Let us know if we can help you!

UPDATE: Q3 Commercial Delinquency Rates According to the Mortgage Bankers Association’s (MBA) latest Commercial Delinquency Report covering ...

Something for servicers - especially those in the default space - to keep in mind as they're determining property disposition strategies is that the cost of repairs continues to rise dramatically.

According to a recent report from Verisk, property repair costs rose by 1.7% from Q2, 6.6% from a year ago, and have jumped by 64% over the past decade.

Home Repair Expenses Steadily on the Rise According to the Verisk Remodel Index, the cost of home repairs and remodeling in the third quarter ...

Canary in the coal mine?

Interesting report from WalletHub showing which states have households experiencing the most financial distress - loans in forbearance or with payment deferrals, negative changes to the average credit score, increases in the number of bankruptcy filings between September 2022 and September 2023, and the share of people with accounts in distress.

Five states with the most distressed borrowers are Louisiana, Mississippi, Tennessee, Texas, and Nevada.

If you're a servicer with borrowers in these states, these trends might be a precursor to mortgage delinquencies and defaults in 2024 (and in fact, Louisiana and Mississippi have already shown higher percentages of loans in than most other states this year).

If you're looking for high quality legal support for your default servicing, law firms in the Hello Solutions Network are ready to help!

Which States Have the Most Americans Experiencing Financial Distress? For Americans’ finances, with inflation, fluctuating unemployment, public health crises, and natural...

Even though delinquencies dipped a bit in the most recent report from ICE, starts rose by almost 33% compared to last October, to about 33,000 defaults - the highest number in 18 months.

The Hello Solutions Network of law firms provides top notch legal support for default servicers and investors across the country. As foreclosure starts tick up, let us know how we can help meet your needs.

Foreclosure Starts Rose in October, but Remain at Historically Low Levels Intercontinental Exchange, Inc’s—better known as ICE—has again released its monthly report highlight...

As we celebrate the holiday, we are thankful for our family, friends, loved ones, clients and colleagues. We are grateful for our blessings of home, health and having a thriving business.

Join us in giving thanks for all that we have, and remembering and offering assistance to those who are struggling physically, financially, or emotionally.

From all of us at Hello Solutions, Happy Thanksgiving!

Important announcement today from the U.S. Department of Veterans Affairs for servicers: on VA loans have been suspended until May, 2024, while the VA puts loan modification programs in place to help distressed borrowers.

VA Issues Measure to Protect Vets From Foreclosure The U.S. Department of Veterans Affairs has called on mortgage servicers to pause foreclosures until...

Interesting article on the Federal Housing Administration (FHA), which played an enormous role helping first time buyers acquire homes and seniors leverage their equity with reverse this year.

Worth noting for those of us in the default servicing industry, serious delinquency rates are back down below 4% - roughly the same as they were prior to the pandemic. Serious delinquencies had peaked at about 12% earlier, as about 2 million FHA borrowers took advantage of the government's mortgage forbearance program.

The Hello Solutions Network provides legal support for default servicing across the country, and its member firms offer expertise in FHA foreclosure processes. Let us know if we can help you!

FHA Reports on Delinquency, Credit Access in Report to Congress The Federal Housing Administration (FHA) has issued its annual report to Congress which details the ...