CFPB Reports On Mortgage Forbearance And Delinquencies


Source: site

pandemic-related mortgage forbearance and delinquencies and from
consumer complaints.

In a special issue brief on the “characteristics of
mortgage borrowers during the COVID-19 pandemic,” the CFPB
found that mortgagor forbearance and delinquency are significantly
more prevalent in communities of color and lower-income
communities. The CFPB found that single-borrower mortgage loans
made up a significantly higher share of loans that were in
forbearance or delinquent compared to those who were current.
Further, the CFPB found that “the share of loans with a loan
to value ratio above 60 percent was significantly larger for
borrowers in forbearance (50 percent) or delinquent (51 percent)
compared to those who were current (34 percent).” The CFPB
concluded that “as programs designed to aid mortgage borrowers
during the pandemic wind down, borrowers in forbearance programs or
who are delinquent may be disproportionately at risk of losing
their home.”

In a bulletin detailing mortgage complaints,
the CFPB determined that consumers primarily faced issues with (i)
the accuracy and clarity of information provided by their loan
servicers regarding the status of their loans or post-forbearance
options and (ii) significant delays or denials of loan
modifications.

The CFPB noted that it recently issued a Notice of Proposed Rulemaking that would
amend Regulation X, 12 C.F.R. 1024 and the existing Mortgage
Servicing Rule provisions to add additional borrower protections
related to COVID-19. The public comment period closes on May 10,
2021.

Primary Sources

  1. CFPB Press Release: CFPB Issues Reports Detailing
    Mortgage Borrowers’ Continuing COVID-19
    Challenges
  2. CFPB Report: Characteristics of Mortgage Borrowers
    during the COVID-19 Pandemic
  3. CFPB Report: Complaint Bulletin – Mortgage
    Forbearance Issues Described in Consumer
    Complaints

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