The Mortgage Servicing Collaborative

The Mortgage Servicing Collaborative is an initiative of the Urban Institute’s Housing Finance Policy Center that seeks to improve access to credit by identifying and generating support for reforms that can address lender reluctance to originate and service mortgages.

The Collaborative will convene key industry stakeholders— including lenders, servicers, consumer groups, civil rights leaders, researchers, and policymakers—to develop an evidence-based understanding of key factors and to develop and analyze possible solutions and implications. The Mortgage Servicing Collaborative seeks to:

  • identify the obstacles to more robust lending  under the existing regulatory framework and how those obstacles affect consumer access;
  • foster debate and analysis on how we can remove or minimize the obstacles identified to better serve consumers and enable a more efficient market; and
  • produce and disseminate research findings and policy recommendations, including those by Collaborative members, or a collection of policy options that can clarify and advance the debate.

For more information about the collaborative, contact Alanna McCargo.

Sign up here to receive The Mortgage Servicing Collaborative newsletter that reports quarterly on the activities of the Collaborative.

Mortgage Servicing Collaborative Fact Sheet

The Data

Skyrocketing costs. The cost to service a performing loan tripled between 2008 and 2015 (from $59 to $181); the cost to service nonperforming loan increased fivefold (from $482 to $2,386). Servicer compensation did not change during this same period.

Drop in lending to vulnerable populations. Between 2006 and 2015, loans to low- and moderate-income borrowers decreased 35 percent; loans to African American and Hispanic borrowers decreased 64 percent.

Domination of nonbank servicers. From 2013 to 2016, the share of nonbanks servicing FHA loans increased from 35 percent to more than 70 percent. The share of nonbanks servicing GSE loans increased from 30 percent to 50 percent.

 

Servicing cost per loan have increased dramatically

Loan origination volume by race

 

A note about Urban Institute research: No funder determines research findings or the insights or recommendations of our experts. Urban does not accept any support that implies or requires endorsement of a position or product. The board and management of Urban will defend the independence of researchers and experts even if funders disagree with their findings or conclusions. Further information on Urban’s funding principles is available here.

 

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