The organization says its goal is to help servicers handle the surge in forbearance amid COVID-19
MISMO, the mortgage industry's standards organization, has initiated an effort to digitize the loan modification process to bring relief to servicers strained by increased forbearance volume due to COVID-19.
"Millions of homeowners are facing financial hardships because of the COVID-19 pandemic, and as of April 19, nearly 7% – 3.5 million – of mortgage borrowers are in forbearance. Mortgages for many borrowers exiting forbearance may ultimately need to be modified," said Mike Fratantoni, president of MISMO.
The organization is currently calling on industry participants to join the initiative and help digitize the process.
MISMO's digital loan modifications development workgroup (DWG) plans to bring together digital mortgage, servicing, and loan workout professionals to review current loan modification processes. The DWG will then work to develop a set of standards and best practices on how to create, sign, store, and deliver electronically signed loan modifications to help servicers dealing with paper-based processes and inconsistent forms.
