The Mortgage Bankers Association has released its National Delinquency Survey for the fourth quarter of 2011. It shows total delinquency has dipped below 12% for the first time since 2008, but that is still more than double the average rates before the meltdown in the mortgage market precipitated the recession.
Whether you view this as a cup half-full or half-empty depends on whether you like drinking from an apparently never ending stream of past due mortgages.
Considered in the context of the additional borrower outreach required of the five largest mortgage banks in their widely publicized $25 billion settlement with 49 state attorneys general, the continued high volume of delinquent accounts means their servicing operations are going to be doing double duty for the foreseeable future.
When the industry gets together next week in Orlando for the MBA's National Mortgage Servicing Conference, we expect this increased workload to be a popular if not happy topic of conversation.
That's why Varolii will be at the conference (booth 1020) where we will be offering our viewpoint in a panel discussion entitled "Borrower Communication in a Post-SPOC World" (Thursday 2/23 at 1:45 p.m.) and demonstrating why 5 of the top 13 servicers are using Varolii to help them keep their cup from overflowing.