Is there a Forbearance Risk?

We continue to hear concerns from Servicers and the Capital markets world at large regarding forbearance risk.  And now with the GSE’s extending the same flexibility to multi-family borrowers those concerns will hardly diminish anytime soon.  Obviously the multi-family forbearance maximum time frame is only 6 months but borrowers have up to 2 years to make up missed payments.  And the GSE’s make up nearly half of the multi-family debt market.  Tenants must be given rent payback flexibility as well by being allowed to payback missed rent over time instead of a lump sum.  Uncertainty to say the least.

 

Increasingly our clients are seeking valuation options as they formulate strategies during this uncertain time.  Loan pool quality being a keen driver.  We are getting a lot of inquiries about our Property Rx system.  Property Rx provides single point of contact for bump logic measures to be deployed at the direction of the client instead of more typically rigid systems.  Likewise, many of our clients are taking a deeper dive at reconciling diverse opinions of value by using our SVR product.  Risk is a huge concern these days and confidence is a must when determining tactics.

 

Contact us at sales@SummitValuationSolutions.com and our experienced leadership will reach out to discuss your specific needs.  We adhere to the concept of being your consultative partner regardless of whether the final decision benefits us.

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