Constant + Mortgage offers a self-service option to help ease forbearance strain
With over 3.8 million homeowners now in forbearance due to the coronavirus economic crisis, fintech lender Constant has released a new module that automates the process of evaluating a borrower's eligibility for mortgage relief.
The Constant + Mortgage module, which can be integrated with several servicing and collection platforms, provides a self-service platform that automatically processes payment relief requests.
"The skills required to sustainably underwrite troubled debt will require a higher level of expertise and experience than the initial round of forbearances," Constant CEO Catherine Powers said. "We believe that automating this and providing a self-service option is the only scalable solution for what will be a long-term problem."
The new module evaluates the financial hardship a borrower is experiencing and offers appropriate relief, such as forbearance, repayment plans, or a loan modification. These options include loan workout add-ons for short sale and deed-in-lieu of foreclosure.
"When the initial forbearance plans expire this summer, the variety and complexity of hardships will require more than a one-size-fits-most solution," Powers said. "Customers will be looking to extend their relief period, kicking off what will likely be a slow and perpetual cycle of ask and receive through 2021 and beyond."
