The DS5: Inside the Industry returns with Kevin Palmer, SVP, Single-Family Portfolio Management at Freddie Mac, here to discuss an issue at the top of minds of many servicers and other industry professionals as well as hundreds of thousands of homeowners across the country—the end of COVID-19-related forbearance programs.
Of the 629,000 forbearance plans slated to be reviewed for extension or removal this month, about 400,000 are set to reach their final plan expirations based on established allowable forbearance term lengths. Palmer speaks about the ways Freddie Mac is working with servicers to guide borrowers facing forbearance exits.
In the episode, Palmer offers up his No. 1 recommendation for servicers during this hectic period. He also shares more about Freddie's proprietary offerings such as the payment deferral program as well as the enterprise's latest technological tools, which are not going away, he says.
"We've seen huge success of borrowers ... roughly 800,000 used forbearance and we've seen 80% have come current, Palmer told DS News. "We still have a lot ahead of us—and this pandemic is not over—and we need to get that 20% back on their feet. It's so important for them to understand what is here for them ... We're not done yet."