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CFPB Finds Minorities at Higher Mortgage Default Risk

In separate report, MBA finds forbearances at lowest level since onset of pandemic.

Chart showing how minorities are lagging behind in mortgage payments during the pandemic

Even as the number of homeowners in mortgage forbearance programs dwindles, those remaining are at rising risk of default, and minorities make up a disproportionate number of those households, according to a CFPB report.

The Mortgage Bankers Association estimates that 4.5% of mortgages were in forbearance in the week ending April 25, representing about 2.23 million homeowners. At its peak in early June 2020, MBA estimated 8.6% of mortgages were in forbearance, or about 4.3%.

The CFPB analysis found a significant share of these borrowers were minorities, lived in majority-minority tracts and lived in relatively lower-income areas.

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Jim DuPlessis

Jim DuPlessis

A journalist for decades.

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