The CFPB on Monday issued a report warning of widespread evictions and foreclosures once federal, state and local pandemic protections come to an end — absent additional public and private action.
The CFPB report indicated that:
- over 11 million families are behind on their rent or mortgage payments;
- 2.1 million families are behind at least three months on mortgage payments, while 8.8 million are behind on rent; and
- homeowners are estimated to owe almost $90 billion in missed payments — the last time this many families were behind on their mortgages was during the Great Recession.
Recent actions by the FHFA, FHA, the Department of Veterans Affairs and the U.S. Department of Agriculture prohibit lenders from foreclosing on most mortgages until June 30, 2021, and after that date, families who cannot resume making regular payments will need to make an agreement with their lender to avoid foreclosure according to the CFPB. Residential eviction protections for renters are extended through March 31, 2021.
Also in the CFPB report:
- Black and Hispanic families are more than twice as likely to report being behind on housing payments than white families.
- While mortgage forbearance has dropped foreclosures to historic lows, the 2.1 million homeowners who are more than 90 days behind on payments are likely to experience severe financial hardship when payments resume. Of these families, an estimated 263,000 families are seriously behind on their mortgages and not in forbearance, putting them at higher risk of foreclosure once federal and state moratoria end.
- 9% of renters, who do not have the same protections or options as homeowners, report that they are likely to be evicted. Black and Hispanic households are more likely to report being at risk.
- 28% of manufactured home residents reported being behind on their housing payments, compared to 12% of single-family home residents and 18% of residents in small-to-mid-sized multi-unit buildings.
The full report can be accessed on the CFPB website.