A widespread disaster—whether natural, man-made or a pandemic like the current coronavirus (COVID-19) crisis—can have a lasting impact on people, businesses and entire global economies. As is often the case, it’s not a matter of if a crisis occurs, but when. Lenders and housing professionals should prepare before, during and after a potential disaster to help future borrowers and homeowners through moments of uncertainty and need.

Disaster Preparedness to Mitigate Uncertainty

Prior disasters can provide insight into how lenders and other housing professionals can create business continuity plans that bolster operations and provide support and guidance for borrowers and homeowners in the wake of a largescale event.

Here are a few tips:

  1. Before a Crisis—Build and Test. Lenders and mortgage professionals should be proactive and have a well-established plan in place. For example:
    • Consider developing a disaster plan based on recent and other experiences before a potential crisis event occurs.
    • Ensure the plan is communicated across the organization.
    • Test the plan so that when an event occurs, it can be seamlessly implemented.
  1. During a Crisis—Implement. Have clear and open lines of communications with employees and clients to effectively implement business continuity and disaster plans. For example:
    • Keep an updated list of resources available for employees and borrowers to help with different services needed when disaster hits.
  1. After a Crisis—Assess and Adjust. Once the event is done:
    • Evaluatewhether the plan worked as expected.
    • Uncover areas where the plan(s) could be strengthened.
    • Implement potential changes and lessons learned.

Understanding Available Resources       

A disaster—regardless of type—can set back potential borrowers and homeowners in many ways.

Keeping potential borrowers and homeowners informed of resources and available options during times of need is important to help them attain and/or sustain homeownership.

As lenders and housing professionals develop their continuity plans and playbook, they should foster awareness and  understanding of  available resources that can help assist their clients.

For lenders and housing professionals, this includes:

  • Working with nonprofit housing organizations to provide education and counseling.
  • Understanding various mortgage options available to assist borrowers based on their individual needs and experience during a time of need.
  • Highlighting financial education opportunities, which can include modules that inform borrowers of resources during times of need.
  • eClosing options that help address social distancing.

For borrowers, it is important to build up financial reserves to prepare for potential events that can disrupt employment. Borrowers should also know their:

Knowing the players involved with their mortgages can help borrowers understand available resources and payment relief options. Also, housing counselors can assist if or when a disaster hits to help borrowers understand and complete documents necessary in the homebuying and/or foreclosure mitigation processes.

Visit our COVID-19 resources web page for more information. #HelpStartsHere