PBA results enable lender-servicers to analyze borrowers’ spending habits and evaluate an individual homeowner’s mortgage default risk.
Since borrower data analysis are key to managing distressed and at-risk residential loans for both lender-servicers and alternative real estate investors, PBAs are completed based on “in-depth analysis of a borrower’s income and expenses.”
To collect borrower feedback the appointed Fay Servicing single point of contact meets with the respective borrower face-to-face or over the phone.
Lender-servicers have the option to access borrower data reports online at the Fay browser-based reporting portal, which allows users to customize mortgage payment schedules, change borrower reporting features and monitor financial health over time.
A one-page summary report with the acquired data is simultaneously sent to the borrower and posted online for the lender-servicer.
The goal, according to chief executive officer of Fay Servicing, Ed Fay, is twofold.
PBAs establish more trustworthy relationships between borrowers and servicers, he said. They offer lenders a way “to be more aware of their borrowers’ evolving financial situations,” as they estimate their behavior and long-term budgeting patterns.
At the same time PBAs help establish an open borrower-servicer line of communication that helps educate the borrower on sound spending practices.