The CARES Act established a mandate for forbearance but the Conference of State Bank Supervisors said it’s not clear when residential servicers should stop offering new relief plans.
Like in previous annual reports, the Financial Stability Oversight Council noted that nonbank mortgage companies can be more vulnerable to financial difficulties than depositories.
Nearly 30% of borrowers with loans in the deal have received forbearance or a deferral. The servicer, Citadel, will not make advances on delinquent payments.