May 2014

Snapshot of older 

consumers and mortgage 

debt

Office for Older Americans
2 CONSUMER FINANCIAL PROTECTION BUREAU

Table of contents

Table of contents.........................................................................................................2

1. Introduction...........................................................................................................3

2. Rising mortgage debt threatens retirement security for millions 

of older Americans ...............................................................................................6

3. Increased foreclosure rates among older homeowners during the 

financial crisis shows the risk of debt in retirement .......................................10

4. One third of older consumers’ complaints submitted to CFPB are 

about their mortgages........................................................................................13

4.1 Complaints.............................................................................................. 14

4.2 Company responses .................................................................................15

5. Conclusion ..........................................................................................................17
3 CONSUMER FINANCIAL PROTECTION BUREAU

1. Introduction

Rising mortgage debt is threatening the retirement security of millions of older Americans.

In general, older consumers are carrying more debt, including mortgage, credit card, and even 

student loan debt, into their retirement years than in previous decades.1 

Mortgage debt, the largest debt that older consumers carry, is the key driver of this trend.2 

Today, compared to a decade ago, fewer older homeowners own their home outright.3 

For many of the roughly 4.4 million retired homeowners with mortgage debt, making monthly 

mortgage payments on top of paying other monthly expenses can be a hardship.4

 

1See generally Fed. Reserve Bd., 2010 Survey of Consumer Finances Chartbook (2010), 

http://www.federalreserve.gov/econresdata/scf/files/2010_SCF_Chartbook.pdf (showing income, assets, and 

liability of families from 1989-2010). (Referred to as “Fed. Reserve Bd., 2010 Survey.”) Unless otherwise noted in 

this snapshot, the term “older consumer” refers to households led by a consumer age 65 and older. 

2Id. at 836-838, 908-910; See also Census Bureau, Household Debt in the U.S.: 2000 to 2011 2 (2011), 

http://www.census.gov/people/wealth/files/Debt%20Highlights%202011.pdf. (Referred to as “Census Bureau, 

Household Debt 2000 to 2011.”)

3See Census Bureau, Complete Set of Tables: Table C-14A-OO Mortgage Characteristics—Owner-Occupied Units 

(2011), http://www.census.gov/programs-surveys/ahs/data/2011/h150-11.html (follow “Complete Set of Tables and 

Standard Errors” hyperlink; then follow “Sheet C-14A-OO”) (last visited Apr. 28, 2014). (Referred to as “Census 

Bureau, Complete Set of Tables.”); Census Bureau, National Summary Report: Table 3-15 Mortgage 

Characteristics—Owner-Occupied Units (rev. 2013), http://www.census.gov/housing/ahs/data/national.html 

(follow “Table Crosswalk” hyperlink; then follow “Sheet TAB315”) (last visited Apr. 28, 2014). (Referred to as 

“Census Bureau, National Summary Report.”)

4CFPB analysis of the American Community Survey Public Use Microdata Sample Files 2011 using DataFerret. Nearly 

2.4 million (56 percent) of the 4.4 million retired homeowners with mortgage debt spend 30 percent or more of 

their household income in housing related costs. Housing affordability is threatened when housing costs exceed 30
4 CONSUMER FINANCIAL PROTECTION BUREAU

Moreover, as a result of carrying increased mortgage debt, many older Americans have accrued 

less home equity than their age group did a decade ago.5 Less home equity means less 

accumulated net wealth for many consumers.6

FIGURE 1: PERCENT OF OLDER CONSUMERS WITH DEBT7 

Source: Federal Reserve Board, Survey of Consumer Finances

 

percent or more of a homeowner’s income. See e.g. Mary Schwartz & Ellen Wilson, Census Bureau, Who Can Afford 

To Live in a Home?: A look at data from the 2006 American Community Survey (2008), 

http://www.census.gov/hhes/www/ housing/special-topics/files/who-can-afford.pdf.

5See Census Bureau, Complete Set of Tables, supra; Census Bureau, National Summary Report, supra.

6See Census Bureau, Table 1. Median Value of Assets for Households, by Type of Asset Owned and Selected 

Characteristics: 2011 (2011), http://www.census.gov/people/wealth/files/Wealth_Tables_2011.xlsx (last visited 

Apr. 28, 2014) (showing that in 2011, home equity was the second most common type of asset after a vehicle that 

older consumers held; and, the median net worth of older consumers drops from $170,516 to $27,322 when home 

equity is excluded). (Referred to as “Census Bureau, Median Value of Assets.”)

7See Fed. Reserve Bd., 2010 Survey, supra at 836, 908. Figure 1 shows the percent of older consumers holding 

consumer debt. It also shows the proportion of consumers whose debt load includes mortgages.

51%

57%

65%

32% 29%

39%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1992 2001 2010 1992 2001 2010

65-74 75+

Debt does

not include

mortgages

Debt

includes

mortgages
5 CONSUMER FINANCIAL PROTECTION BUREAU

This snapshot includes the Consumer Financial Protection Bureau’s (CFPB) analysis of survey 

data, which describes the growing number of older consumers carrying mortgage debt, and the 

risks that this trend presents to their financial security.8 We provide information about 

delinquency and foreclosure rates among older homeowners from 2007 to 2011, as well as 

information about mortgage complaints submitted to the CFPB by consumers age 65 and 

older.9

 

8In this snapshot, the term “mortgage” does not include reverse mortgages and home-equity lines of credit (HELOC).

9The CFPB’s Office of Financial Protection for Older Americans prepared this snapshot. The Office was established 

within the CFPB under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act 

or Act). 12 U.S.C. § 5493(g)(1).
6 CONSUMER FINANCIAL PROTECTION BUREAU

2. Rising mortgage debt

threatens retirement security 

for millions of older

Americans

Approximately 80 percent of the 41.4 million Americans age 65 and older own their home.10 

They have the highest homeownership rate among all age groups.11 Our analysis shows that 

while the rate of homeownership has remained constant over the last decade, the number of 

older homeowners holding mortgages has increased.12

 

10See Census Bureau, Population 65 Years and Over in the United States; 2011 American Community Survey 1-Year 

Estimates (2011), http://factfinder2.census.gov/bkmk/table/1.0/en/ACS/11_1YR/S0103 (last visited Apr. 28, 2014). 

(Referred to as “Census Bureau, Population 65 Years and Over.”) 

11See Robert R. Callis & Melissa Kresin, Census Bureau, Current Population Survey, Residential Vacancies and 

Homeownership in the Third Quarter 2013 (2013), http://www.census.gov/housing/hvs/files/qtr313/

q313press.pdf.

12See Census Bureau, Complete Set of Tables, supra; Census Bureau, National Summary Report, supra.
7 CONSUMER FINANCIAL PROTECTION BUREAU

FIGURE 2: PERCENTAGE OF OLDER HOMEOWNERSHIP AND HOMEOWNERS WITH A MORTGAGE

 

Source: Census Bureau, American Housing Survey

The CFPB reviewed a number of studies, and found that the refinancing boom of the early 

2000s, among other things, contributed to this trend.

13 Other factors include a general trend 

 

13See John Gist, Carlos Figueiredo & Verma Satyendra, Boom and bust: Housing equity withdrawal and 

consumption decisions and their impacts on household wealth, J. Aging & Soc. Pol’y, Issue 24 (Jan.-Mar. 2012).

22% 22%

25% 24%

27%

30%

80% 80% 80% 80% 80% 81%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2001 2003 2005 2007 2009 2011

Percentage

Owned with a mortgage Homeownership Rate
8 CONSUMER FINANCIAL PROTECTION BUREAU

among Americans to buy their first home later in life,14 provide small down payments on home 

purchases, and borrow against their home equity to pay for a variety of expenses.

15

The CFPB’s analysis of Census data shows that the percentage of homeowners’ age 65 and older 

carrying mortgage debt increased from 22 to 30 percent (3.8 to 6.1 million) from 2001 to 2011.16 

Additional data from the Federal Reserve shows that consumers over age 75 had the greatest 

increase during this period. The proportion of consumers 75 and older with mortgage debt more 

than doubled from 8.4 to 21.2 percent.

17

 

Consumers age 65 and older also owe larger 

balances on their mortgages than the 65 and 

older age cohort did a decade ago. From 2001 

to 2011, the median amount older 

homeowners owed on mortgages increased 82

percent, from approximately $43,400 to 

$79,000.18 

Furthermore, older consumers owe more on their mortgages in relation to the value of their 

home than a decade ago. The outstanding balance on their mortgages relative to the value of 

their homes (debt-to-value ratio) increased from 30 to 46 percent from 2001 to 2011.19 

 

14See Emily Rosenbaum, Cohort Trends in Housing and Household Formation Since 1990 5 (2013), http://www.s4. 

brown.edu/us2010/Data/Report/report10092013.pdf.

15See e.g. Annamaria Lusardi & Olivia S Mitchell, Older Adult Debt and Financial Frailty, Michigan Retirement 

Research Center Working Paper No. 291 (Sep. 2013), http://www.mrrc.isr.umich.edu/publications/papers

/pdf/wp291.pdf.

16See Census Bureau, Complete Set of Tables, supra; Census Bureau, National Summary Report, supra.

17See Fed. Reserve Bd., 2010 Survey, supra at 908.

18See Census Bureau, Complete Set of Tables, supra; Census Bureau, National Summary Report, supra. Median value 

is based on households with a mortgage. The amount reported for 2001 was adjusted for inflation to reflect 2010 

real dollars. In 2001, the unadjusted amount was $34,148.

19See Census Bureau, Complete Set of Tables, supra; Census Bureau, National Summary Report, supra.

From 2001 to 2011, the median 

amount older homeowners owed 

on mortgages increased 82 

percent, from approximately 

$43,400 to $79,000.
9 CONSUMER FINANCIAL PROTECTION BUREAU

In addition to having less home equity, older consumers pay significantly more in housing costs 

when they have a mortgage.20 In 2011, older homeowners with a mortgage spent $800 or 290

percent more per month than their counterparts with no mortgage.21 Specifically, homeowners 

with a mortgage spent a median amount of $1,257 a month on housing, whereas homeowners 

with no mortgage spent a median amount of $434 a month.22

 

20Housing costs include utilities, property taxes, insurance, and maintenance. For homeowners with a mortgage, it 

also includes the mortgage and other associated costs such as mortgage insurance.

21See Census Bureau, Population 65 Years and Over, supra. 

22Id. In addition, housing costs for older consumers with mortgage debt consume on average 39 percent of their 

monthly expenses. Whereas, housing costs for older consumers who own their homes free and clear consume on 

average 31 percent. See Soc. Sec. Admin., Expenditures of the Aged Chartbook 35 (2010), 

http://www.ssa.gov/policy/docs/chartbooks/ expenditures_aged /2010/exp-aged-2010.pdf.
10 CONSUMER FINANCIAL PROTECTION BUREAU

3. Increased foreclosure rates 

among older homeowners 

during the financial crisis 

shows the risk of debt in 

retirement

Many older homeowners began having difficulty paying their mortgages when the recession 

began in 2007.23 

From 2007 to 2011, the percentage of older homeowners who were seriously delinquent in 

paying their mortgage (90+ days late or in foreclosure)24 increased five-fold.25 The serious 

delinquency rate among mortgage holders age 65 to 74 increased from 0.85 to 4.96 percent.

26

 

For those, age 75 and older, the rate was even higher. Their rate grew from 1.01 to 5.87 percent.

27

 

23See Lori A. Trawinski, AARP Pub. Policy Inst., Nightmare on Main Street: Older Americans and the Mortgage 

Crisis 3 (2012), http://www.aarp.org/content/dam/aarp/research/public_policy_institute/cons_prot/2012

/nightmare-on-main-street-AARP-ppi-cons-prot.pdf. (Referred to as “Trawinski, Nightmare on Main Street.”)

24Id. at 6.

25Id. at 7-8.

26Id.

27Id.
11 CONSUMER FINANCIAL PROTECTION BUREAU

FIGURE 3: DELINQUENCY AND FORECLOSURE RATES AMONG OLDER HOMEOWNERS (2007- 2011)

Source: AARP Public Policy Institute, CoreLogic data

As delinquency rates increased during this period, foreclosure rates also increased. From 2007 

to 2011, foreclosure rates increased from 0.25 to 2.55 percent for consumers age 65 to 74, and

from 0.33 to 3.19 percent for consumers age 75 and older.28 Further analysis of

AARP/CoreLogic data shows that in 2007, approximately 30 percent of seriously delinquent 

older homeowners were in foreclosure. By 2011, the percentage of seriously delinquent older 

homeowners in foreclosure spiked to over 50 percent.

29

 

While delinquency and foreclosure rates have decreased since 2012,30 the increased foreclosure 

rate during the recent financial crisis reveals the financial fragility of older consumers. Making 

 

28Id. at 7.

29Id. at 7-8.

30See CoreLogic, National Foreclosure Report, June 2013 3, 4 (2013), http://www.corelogic.com/research/fore

closure -report/national -foreclosure -report-june-2013.pdf (stating that foreclosures declined from 3.4 to 2.5

0%

1%

2%

3%

4%

5%

6%

7%

2007 2008 2009 2010 2011

Percentage

65-74 (serious delinquency) 75+ (serious delinquency)

65-74 (foreclosure) 75+ (foreclosure)
12 CONSUMER FINANCIAL PROTECTION BUREAU

mortgage payments when experiencing a financial shock leads to financial insecurity for many 

older homeowners.31 Older homeowners in retirement who live on reduced retirement income 

are particularly vulnerable to such financial distress. 32

Foreclosure among older homeowners is concerning for many reasons. Among other things, 

older consumers have greater difficulty recovering from foreclosure than their younger 

counterparts due to their increased incidences of health problems,

33 cognitive impairment,34

 

and difficulties returning to the work force.35

 

percent from June 2012 to June 2013 for all borrowers; and, serious delinquency rates declined from 6.85 to 5.45

percent from June 2012 to June 2013 for all borrowers); See also CoreLogic, National Foreclosure Report, 

December 2013 (2013), http://www.corelogic.com/research/foreclosure-report/national-foreclosure-reportdecember-2013.pdf.

31See Trawinski, Nightmare on Main Street, supra.

32See e.g. Sudipto Banerjee, Expenditure Patterns of Older Americans, 2001−2009, EBRI Issue Brief, No. 368 (Feb. 

2012), http://www.ebri.org/pdf/briefspdf/EBRI_IB_02-2012_No368_ExpPttns.pdf.

33See Ctrs for Disease Control and Prevention, Health, United States, 2012: With Special Feature on Emergency Care 

168 (2011), http://www.cdc.gov/nchs/data/hus/hus12.pdf.

34See Census Bureau, Population 65 Years and Over, supra.

35See Gen. Accountability Office, Income Security: Older Adults and the 2007-2009 Recession 3 (2011), 

http://www.gao.gov/assets/590/585789.pdf.
13 CONSUMER FINANCIAL PROTECTION BUREAU

4. One third of older 

consumers’ complaints 

submitted to CFPB are about 

their mortgages

The Office for Older Americans looked at the complaints that older consumers submitted to the 

CFPB. We found that from July 2011 through December 2013, consumers age 65 and older have 

submitted approximately 15,500 complaints on a range of financial products and services.

36

About one third (32 percent or 4,936) of their complaints are about mortgages.37

The most common types of mortgage complaints from older consumers (46 percent) are about 

problems they face when they are unable to make payments (such as issues relating to loan 

modifications, collections, or foreclosures). Other common types of mortgage complaints (32

percent) involve problems older consumers have when making payments (such as issues with 

loan servicing, payments, and escrow accounts).

 

36Consumer complaints are submissions that express dissatisfaction with, or communicate suspicion of wrongful 

conduct by, an identifiable entity related to a consumer’s personal experience with a financial product or service. 

Taking in, responding to, and analyzing these complaints is an integral part of the CFPB’s work, as Congress set 

forth in the Dodd-Frank Act. 12 U.S.C. § 5493(b)(3). Since July 2011, the CFPB has continued to work toward 

expanding its complaint handling to include new products and services under its authority. The Bureau responds to 

these complaints and refers consumers to other regulators or additional resources as appropriate. The analysis is 

based on the 15,482 complaints submitted between July 21, 2011 and December 31, 2013 by or on behalf of 

consumers who voluntarily self-reported their age as 65 and older. This analysis excludes multiple complaints 

submitted by a given consumer on the same issue and whistleblower tips.

37The Bureau accepts complaints on mortgage products, including reverse mortgages. Reverse mortgage complaints, 

however, are not included in this discussion.
14 CONSUMER FINANCIAL PROTECTION BUREAU

FIGURE 4: OLDER CONSUMERS’ COMPLAINTS BY PRODUCT38

Source: CFPB Complaints 

4.1 Complaints

Many consumers provide details about their experiences with their mortgage lender and 

servicer. Older consumers complain that their overall debt burden often led to their mortgage 

default. Many talk about the challenge of living on a fixed or limited income due to 

unemployment, poor health, or the exhaustion of retirement savings. 

Many older consumers complain that their mortgage lender or servicer refused to allow them to 

modify their loans. Some who received loan modification offers were unable to afford the new 

terms, and some who obtained a modification continued to struggle to make ends meet. Finally, 

 

38“Other” products include consumer loans (3 percent) and student loans (1 percent).

Mortgage

32%

Credit card

24%

Bank account 

or service

16%

Debt 

collection

14%

Credit 

reporting

8%

Other

4% Reverse 

mortgage

2%
15 CONSUMER FINANCIAL PROTECTION BUREAU

consumers complain that after completing a trial period plan, their loan servicer refused to allow 

them to enter a final permanent loan modification.

Consumers frequently complain about loan 

servicing issues such as delayed crediting of 

payments and improper escrow accounting. 

Some say that a significant breakdown in 

communication about the status of their 

accounts led to serious delinquency or 

foreclosure. Many report that communication 

failure arose when servicing was transferred 

from one company to another. 

Older consumers with loans in default frequently complain that their loan servicers provide 

insufficient and conflicting information about loss mitigation options that may be available to 

them. Some who apply for a loan modification complain that servicers provide inadequate and 

conflicting information about the status of their applications.

Servicing issues typically last for months, and sometimes years. Many consumers complain that 

their servicer lost their documents, sometimes multiple times, or required that the consumer 

repeatedly resubmit new documentation. 

Even homeowners who have resigned from further efforts to save their home complain that 

servicers repeatedly refuse or fail to cooperate with the consumer’s attempts to complete short 

sales and/or execute deeds in lieu of foreclosure.

4.2 Company responses

Companies have responded to the majority (98 percent) of older consumers’ mortgage 

complaints. The most common company response category was ‘closed with explanation,’ which 

includes an explanation describing the steps taken by the company in response to the complaint. 

In other instances, companies provided monetary or non-monetary relief to the consumer.

Many talk about the challenge 

of living on a fixed or limited 

income due to unemployment, 

poor health, or the exhaustion 

of retirement savings.
16 CONSUMER FINANCIAL PROTECTION BUREAU

FIGURE 5: COMPANIES’ RESPONSES TO OLDER CONSUMERS’ COMPLAINTS

Source: CFPB Complaints

More than one-fourth (28 percent) of older consumers disputed the company’s response to their 

mortgage complaint, which is a higher dispute rate than for other financial products (23

percent).

Lastly, on average, companies responded to mortgage complaints within 18 days, compared to 

complaints about other products, where companies averaged 13 days to respond to a complaint.

0% 20% 40% 60% 80%

Company reported closed

Company provided administrative response

Company reported closed with nonmonetary relief

Company reported closed with monetary

relief

Company reported closed with explanation
17 CONSUMER FINANCIAL PROTECTION BUREAU

5. Conclusion

The consumer complaints described above illustrate many of the problems that older 

homeowners are facing today. The increased mortgage debt load is having substantial financial 

consequences on many of them. For example, the resulting increase in housing costs is straining 

the monthly budgets of millions of retirees.39 Consequently, among other things, many older 

Americans when carrying a mortgage have remained in the work force longer than they 

expected.40

Many homeowners have experienced more dire consequences too when they have been unable 

to handle the financial burden of mortgage payments on top of their other living expenses. The

high foreclosure rates during the financial crisis show the difficulty of carrying a mortgage when 

experiencing a financial shock. For this reason, carrying a mortgage well into retirement poses 

many potential challenges for older Americans who typically live on reduced income yet face 

increased expenditures for health and long-term care.41

As mortgage debt has increased, older consumers have also accrued less home equity. Decreased 

home equity wealth is a great concern in light of Americans’ increased longevity and lack of

 

39See CFPB analysis of the American Community Survey, supra.

40See Barbara Butrica & Nadia Karamcheva, Does Household Debt Influence the Labor Supply and Benefit Claiming 

Decisions of Older Americans? Center for Retirement Research Working Paper, Issue 22 (Dec. 2013), 

http://crr.bc.edu/wp-content/uploads/2013/12/wp_2013-22-508.pdf.

41See e.g. Sudipto Banerjee, Expenditure Patterns of Older Americans, 2001−2009, EBRI Issue Brief, No. 368 (Feb. 

2012), http://www.ebri.org/pdf/briefspdf/EBRI_IB_02-2012_No368_ExpPttns.pdf.
18 CONSUMER FINANCIAL PROTECTION BUREAU

financial preparedness for retirement.42 For many, home equity – which is often their primary 

and sometimes only asset – may not be there when they are likely to need it later in life.43 

 

42See Gen. Accountability Office, GAO-11-400, Retirement Income: Ensuring Income throughout Retirement 

Requires Difficult Choices 3 (2011), http://www.gao.gov/assets/320/319385.pdf; See also Soc’y of Actuaries Comm. 

on Post Retirement Needs and Risks, Urban Inst. & Women’s Inst. for a Secure Retirement, The Impact of Running 

Out of Money in Retirement (2012), http://www.soa.org/files/research/projects/research-2012-retirementwebready.pdf. 

43See Census Bureau, Median Value of Assets, supra.