The Future of Loss Mitigation

Beyond COVID-19: Necessary Reforms to Loss Mitigation to Preserve Pandemic Innovation

Mortgage servicers are the most important conduit for relief for distressed borrowers and the primary means by which they can remain in their homes. To accomplish this, servicers must have the resources to ensure borrowers receive timely and durable assistance to avoid foreclosure. Informed by guiding principles, policymakers must preserve the critical features mortgage servicers implemented throughout the COVID-19 pandemic. Further action by policymakers to reform the loss mitigation standards to service loans in default is required to aid borrowers unable to afford their payments given evolving market conditions.