The nation’s consumer watchdog agency says more borrowers are behind on their mortgages than at any time since the Great Recession. And the situation is even worse for Black and Hispanic borrowers, who are twice as likely to be delinquent or in a forbearance program as White borrowers.
It’s not quite a true repeat of the housing crisis, which forced millions to fall behind on their mortgages and many to eventually lose their homes to foreclosure, but there’s no question that the pandemic has pushed many homeowners to the financial brink.
So, the Consumer Financial Protection Bureau (CFPB) is ringing an alarm bell it hopes homeowners and mortgage loan servicers hear. If you have a federally backed mortgage and can’t pay, contact your lender to take advantage of coronavirus-related forbearance relief before the program ends. If you’re a loan servicer, the agency issued a warning that urges you to work with borrowers and communicate the options available to avoid a wave of foreclosures.
