- • Borrowers in forbearance or delinquent are disproportionately Black and Hispanic. For example 33% of borrowers in forbearance (and 27% of delinquent borrowers) are Black or Hispanic, while only 18% of the total population of mortgage borrowers are Black or Hispanic.
- • Loans in forbearance or delinquent are disproportionately likely to have high loan-to-value (LTV) and limited equity, leaving them vulnerable to being underwater. For example, half of all loans in forbearance have an LTV greater than 60%, compared to only 34% of current loans. Borrowers who are behind on their payments but not in forbearance are more than five times as likely to have an LTV greater than 95% than borrowers who are current on their payments.
- • Forbearance and delinquency are significantly more common in communities of color (defined as majority minority census tracts) and lower-income communities (defined by census tract income quartiles).

###### Consumer Complaint Bulletin on Mortgage Forbearance

In March 2021, consumers submitted more mortgage complaints to the CFPB than in any month since April 2018. Mortgage complaints mentioning forbearance or related terms have also reached their highest monthly average since March and April of 2020, and the number of borrowers who report they are struggling to make their payments is also trending upward. The complaint bulletin highlights the problems consumers in forbearance are having getting the help they need.

- • Servicer communications: Many consumers complained that servicers did not provide clear and accurate information about their options. In particular, consumers reported that servicers were not providing information about loss mitigation until after the consumer’s forbearance had ended, and that the information provided about post-forbearance options was confusing and incomplete. The CFPB encourages servicers to use all available tools to reach struggling homeowners and to do so in advance of the end of the forbearance period.
- • Delays and denials of loan modifications: Consumers reported long delays in having their loan modified so that they could resume payments on the mortgage. In some cases, these delays were due to demands for additional documents by servicers. In other cases, consumers said servicers provided conflicting information about what options were available and the consumer’s eligibility for loan modification. The CFPB expects servicers to handle inquiries promptly, to evaluate income fairly, and to work with borrowers throughout the loss mitigation process.

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Comment: The original foreclosure relief from the CARES Act was directed at federally related mortgages. The new proposal would apply to all mortgages, not just the federally related ones. However, neither of them apply to “small servicers” as defined in Regulation Z (over 5,000 mortgages serviced). The loss mitigation requirements of RESPA are not extended to such servicers.

##### CFPB Consumer Complaint Bulletin Examines County-Level Demographic Data (04.28.2021)

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) issued a bulletin analyzing complaints submitted by consumers in counties nationwide. In 2019 and 2020, the CFPB received more complaints on a

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