The data include borrower-level demographics and loan-level origination and performance information. The account status in the NMDB is based off credit record data. The CFPB measured account status for open loans as reported through January 2022. Overall, its January 2022 sample of borrowers had a forbearance rate of 1.3 percent, compared to 4.7 percent in the March 2021 sample used in its May 2021 report.
The primary findings include:
• The share of mortgages in forbearance fell significantly for minority and non-minority borrowers between March 2021 and January 2022. Decreases in the rate of forbearance were relatively larger for non-white than for white borrowers with the largest decreases occurring among Hispanic and other race borrowers.
• Black and Hispanic borrowers were overrepresented among those in forbearance. Black and Hispanic borrowers accounted for a combined 31.2 percent of forbearances, while only accounting for 18. percent of the overall sample of borrowers. Furthermore, Black borrowers were 2.8times more likely and Hispanic borrowers were 1.6 times more likely to be in forbearance compared to white borrowers.
• Borrowers in forbearance as of January 2022 appear to have less financial capacity, on average, than borrowers in forbearance as of March 2021. Among mortgage borrowers who were pre-COVID delinquent, the rate of forbearance fell 46 percent between March 2021 and January 2022, whereas the rate of forbearance fell 74 percent over the same period for borrowers who were pre-COVID current.
• Finally, in the January 2022 sample there was a significantly smaller share of loans with current LTV ratios above 80 relative to the March 2021 sample of borrowers. Unlike in past recessions where house prices fell, the pandemic economy has seen significant house price appreciation that can reduce a borrower’s LTV ratio, all else equal