MassHousing’s in-house Loan Servicing Department plays a key role in the Agency’s commitment to sustainable homeownership.
MassHousing has serviced its homeownership mortgage loans since 1996, which includes processing monthly payments, managing escrow accounts, customer service and default management. In June, MassHousing serviced 24,633 mortgage accounts with a balance of $4.2 billion. That’s a significant increase from 2005, when the portfolio included 9,300 loans, and 2004, when the outstanding balance of the portfolio was $700 million.
"MassHousing began servicing our home mortgage loans in 1996 because we didn’t feel our borrowers were receiving an appropriate level of attention from third-party servicers," said Kevin Mello, MassHousing's Director of HomeOwnership Servicing and Operations. "We maintain close relationships with our customers, and we are committed to their long-term success."
Prior to 1996, MassHousing contracted with private companies to manage the servicing of its loans.
Loan Servicing’s hands-on, proactive approach to serving borrowers is a reason why MassHousing’s delinquency and foreclosure rates are on par with if not below the most aggressive benchmarks available.
In Fiscal Year 2019 (June 30, 2018-July 1, 2019), MassHousing fielded more than 62,000 calls from its mortgage borrowers and made nearly 82,000 calls. In addition, the Agency helped 120 borrowers avoid foreclosure through loan modifications, repayment and forbearance plans and graceful exits (e.g., pre-foreclosure sales or deed-in-lieu of foreclosure).
MassHousing has taken a number of steps in recent years to improve the borrower experience. This includes an upgraded telephone system and a new loan servicing website. Of the more than 255,000 monthly mortgage payments processed, 167,354 (66%) were made electronically or over the phone.
"We're creating a more efficient, more convenient way for borrowers to interact with MassHousing," said Mr. Mello.