U.S. watchdog says Black, Hispanic homeowners more likely to be in forbearance program

By Reuters10 days ago

2/2 Reuters. FILE PHOTO: Protesters surround the LA Superior Court to prevent an upcoming wave of evictions and call on Governor Gavin Newsom to pass an eviction moratorium, amid the global outbreak of coronavirus disease (COVID-19), in Los Angeles, California, U.S., 2/2

By Katanga Johnson


WASHINGTON (Reuters) -Black and Hispanic U.S. mortgage borrowers are much more likely to be delinquent or in a forbearance program than white borrowers, highlighting how the COVID-19 crisis is exacerbating systemic racial disparities, according to new data from the Consumer Financial Protection Bureau (CFPB).

In a pair of new reports published Tuesday analyzing 2020 mortgage complaints, the agency found that 33% of homeowners in mortgage holidays or forbearance programs and 27% of delinquent borrowers, identify as Black or Hispanic, while only 18% of the total population of mortgage borrowers identify as Black or Hispanic.

The agency said that mortgage-related complaints equated to 5% of its overall complaints since January 2020, but in March 2021, however, it received the greatest monthly mortgage complaint volume since April 2018.

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