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The CFPB released a report last week that examines the differences between large and small mortgage servicers. Of note in the report, smaller servicers – such as credit unions and community banks – have a large role in rural areas and experienced lower delinquencies during the financial crisis.

The report, "Data Point: Servicer Size in the Mortgage Market," categorized "small servicers" as those servicing 5,000 or fewer loans, while "large servicers" service more than 30,000 loans. It found that smaller servicers service about 14 percent of all outstanding mortgages and over the past few years, at least 95 percent of bank and credit union mortgage servicers fell in the "small servicer" category.

Also noted in the report:

• 74 percent of borrowers with mortgages at small servicers said having a branch or office nearby was an important factor in how they chose their mortgage lender (vs. 44 percent at large servicers); and
• small servicers' loans are less likely to be sold to Fannie Mae or Freddie Mac or to be government-backed.

NAFCU has resources on mortgage servicing available to credit unions online.