Mortgage Industry News
« Return to Mortgage Industry News
Pandemic Reveals Flaws in Loan Reporting
Monday, August 10, 2020
New research by dv01, a loan data agent (LDA) providing securitization
reporting and analytics on consumer unsecured, mortgage, small business, and
student loans, says the pandemic has revealed serious weaknesses in the
reporting structure for mortgages. The company found significant numbers of unreported
loan modifications and says it was these types of reporting errors during the global
financial crisis (GFC) which led to an increase in price volatility when those
errors were later corrected.
A new white paper says that, in stark contrast to the GFC,
consumer loan performance across asset classes has remained relatively strong. Dv01
has released bi-weekly reports of both loan performance and the relief efforts by
issuers and servicers to aid borrowers but has found significant irregularities
and inconsistencies across the multiple parties involved in the mortgage
process. Even four months into the pandemic there are numerous cases of
underreported or entirely omitted modification behavior. Data report quality
varies across deals and even between reporting parties within a single deal and
there appear to be significant differences between online lending and that of
the mortgage industry.
Read Full Article