Brace’s annual survey also finds generational differences and an urgent need for proactive steps to help people retain their homes
LOS ANGELES, April 12, 2023 /PRNewswire/ — As economic uncertainty sweeps across the country, how worried are homeowners about making their mortgage payments? In the 2023 U.S. Mortgage Servicing Survey, digital mortgage-servicing platform Brace found out.
The overwhelming majority, 85%, said inflation makes them worry about their ability to pay their mortgages. Other market conditions worry them too, including interest rates (78%); medical and health expenses (73%); job security (64%), and natural disasters (59%).
Many respondents said they’re already feeling the squeeze from inflation. Nearly half (46%) of homeowners said the increased cost of living has already impacted their ability to pay their mortgages over the last three to six months.
New Demographic Insights
The survey also shows striking differences among demographic groups, particularly by age and race.
Younger homeowners are especially worried about their ability to pay their mortgage, a reversal from historical trends. The survey finds younger homeowners more likely to be handling solo mortgage payments as the only borrower. The majority (53%) of single-borrower mortgages were held by people under 45. Also, most minorities (54%) are single borrowers, compared to 43% of Caucasians.
The survey found that Servicers have an excellent opportunity to invest in homeowner education, which delivers significant ROI (return on investment).
More than two-thirds (69%) of homeowners are interested in receiving educational information from their Servicer about strategies for managing their mortgage finances and home equity. The same percentage said they would work with their Servicer to set financial goals Interest is higher among minorities, with more than three-quarters of respondents wanting these educational tools.
“Our survey sends a crucial message to mortgage servicers about what homeowners need,” says Eric Rachmel, CEO and founder of Brace. “They’re seeking financial guidance, strategies, and education. Being more connected and engaged with servicing overall helps them to know their options and how to act upon them. Last year we found that most homeowners prefer to start with digital support instead of phone, and this builds upon that.”
For further details, methodology, and more, download the full survey at https://brace.ai/resources/brace-2023-mortgage-servicing-survey/.
Read more in Brace’s column for Nasdaq.com, Amid Mortgage Worries, Two Crucial Steps to Protect Homeowners and Investors.
Brace: Information for Media
Brace brings software solutions to the mortgage servicing industry. Founded in 2017 with a vision of empowering every stakeholder to build wealth for future generations through smart homeownership, Brace addresses the inefficiency and lack of transparency that has long characterized mortgage servicing.
Brace: Information for Industry
Brace evolves the connected mortgage infrastructure for all stakeholders—consumers, servicers, lenders, and investors—to intuitively maximize assets and unlock financial performance for every home. Brace’s flagship product, the Default Management Platform, supports the end-to-end process for the decisioning of a loss mitigation application and digital mortgage servicing experience in a secure, compliant, and consumer-led environment. Brace’s customers include some of the largest U.S. mortgage servicers.
Visit brace.ai to learn more.