Communications Between Borrowers and Servicers: Evidence from the COVID-19 Mortgage Forbearance Program

18 Pages Posted: 19 Aug 2020

See all articles by Sumit Agarwal

Sumit Agarwal

National University of Singapore

Brent W. Ambrose

Pennsylvania State University

Arka Bandyopadhyay

City University of NY, Baruch College, Zicklin School of Business

Yildiray Yildirim

Zicklin School of Business, Baruch College - The City University of New York

Date Written: August 18, 2020

Abstract

The servicer comments are proprietary and hardly accessible; however, they can offer the single best source for real-time information of the mortgages. We utilize these comments to shed light on borrower responses to the mortgage forbearance program contained in the Coronavirus Aid, Relief, and Economic Security Act. Our analysis reveals that borrowers did not actively seek out mortgage forbearance in response to this policy.

Keywords: Forbearance, Machine learning, Natural Language Processing

JEL Classification: E60, E65, G18 ,G21, H3

Suggested Citation

Agarwal, Sumit and Ambrose, Brent W. and Bandyopadhyay, Arka Prava and Yildirim, Yildiray, Communications Between Borrowers and Servicers: Evidence from the COVID-19 Mortgage Forbearance Program (August 18, 2020). Available at SSRN: https://ssrn.com/abstract=3676546 or http://dx.doi.org/10.2139/ssrn.3676546

Sumit Agarwal

National University of Singapore ( email )

15 Kent Ridge Drive
Singapore, 117592
Singapore
8118 9025 (Phone)

HOME PAGE: http://www.ushakrisna.com

Brent W. Ambrose

Pennsylvania State University ( email )

University Park, PA 16802-3306
United States
814-867-0066 (Phone)
814-865-6284 (Fax)

Arka Prava Bandyopadhyay

City University of NY, Baruch College, Zicklin School of Business ( email )

United States

Yildiray Yildirim (Contact Author)

Zicklin School of Business, Baruch College - The City University of New York ( email )

55 Lexington Ave., Box B13-260
New York, NY 10010
United States

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