x0000x00005 CONSUMER FINANCIAL PROTECTIONBUREAUThe analysis shows the - PDF document

1 ��5 CONSUMER FINANCIAL PRO
��5 CONSUMER FINANCIAL PROTECTIONBUREAUThe analysis shows the following primary findings:Blackand Hispanicborrowers, who together make up 18 percent of all mortgage borrowersand percent of current borrowersin our data,make up a significantly larger share of borrowers who werein forbearance (33 percent) or delinquent (27percent)as reported through March 20212.The share of loans with LTV ratioabove 60percentwassignificantly larger for borrowers in forbearance (percent)or delinquent (percent)compared to those whowerecurrent (34 percent)as reported through March 2021Borrowers with an LTV ratio above 95percent, who may be the most vulnerableto being underwateron their mortgagemadeup a significant share of those that weredelinquent (5 percent), compared to borrowers that were in forbearance (1 percent) or current(less than 1 percent)3.Loansreported as in forbearance or delinquent in March2021 were more likely than current loans be singleborrowerloansandto have been 30+ days delinquentin February 2020, and forbearance and delinquency werealso associated withdistress on nonmortgage products. Among borrowers whowere 30+ days delinquent in February of 2020, 18.6percent were in forbearance and 15.4percent were 60+ days delinquent as reported through March20214.Considering borrowersbased on their characteristics, forbearance and delinquency weremore common among borrowerswho are Black or Hispanic, have a higher LTV, or have other payment difficultiesas reported through March 2021Tract-level characteristicsalso matter, with forbearance and delinquency bei

2 ng significantly more likely in majority
ng significantly more likely in majorityminority census tracts and in tracts with lower relative income. ��4 CONSUMER FINANCIAL PROTECTIONBUREAUare less vulnerable to nonreporting or suppression compared to credit reporting data.Estimates thatuse other sources of credit reporting data are closer to our estimates. Thus, we note that the demographic information reported should be interpreted with caution because the representativeness of the sample may be different compared to otherpublicly availablesourcesUsing the NMDB, we identify and reportcharacteristics forthree groups: borrowers with mortgage loans that are in forbearance, borrowers with mortgage loans that are 60+ days delinquent, and borrowers with mortgage loans that are current. The analysis provides baseline borrower characteristicsthat can be compared across the three groupsas reported through March 2021We classify borrowers as Black, Hispanic, White, or other10 also estimate current loanvalue (LTV) ratios to examinethe borrower’s equity position in the home.11We report on measures that may be associated with payment difficulty, which include single borrower status12andthe mortgage loan account status prior to the start of the pandemic in February 2020. A third measure of payment difficultyexplores delinquencies on nonmortgage edit products,13which are a useful, if imperfect, proxy for drops in income or other economic distress since the origination of the mortgage. Finally, we estimate census tract-level characteristics, such as whether the borrower lives in a majori

3 tyminority tract. We also estimate the q
tyminority tract. We also estimate the quartile of tract-Metropolitan Statistical Area (MSA)income in which the borrower lives.14The complete setof variable definitions are reported in Appendix A. Mortgage servicers may adjust how they report payments to the credit repositories for homeowners in areas affected by a public emergency such as a natural disaster or the COVID19 pandemic. They may report missed payments as current, report performance data as missing, or not report data at all.Additionally, during these emergencies, delinquent loans aremore likely to have missing performance data than current loanseither because they are not reported or because performance data is reported as missing.See CFPB Mortgage Performance Trends, About the Data: How public emergencies affect the data . 10Race is defined based on the primary borrower. Black is nonHispanic and black, including borrowers whoreported two races with one being Black. White is nonHispanic and white. Hispanic is based on reported ethnicity and can be for any race (white, black, or other). Given the small populations of borrowers, the thercategorycombines nonHispanic borrowers reported as American Indian, Asian, Native Hawaiian/Pacific Islander, or multiple racesTogether, borrowers in the other category make 5 percentof borrowers in the data.11Current LTV is estimated using information on the current firstlien loan balance and changes in theFederal Housing Finance Agency’s(FHFA)smoothed quarterly House Price Indexto estimate a current property valueInformation on the FHFA House Price

4 Index is available at: https://www.fhfa.
Index is available at: https://www.fhfa.gov/DataTools/Downloads/Pages/HousePriceIndex.aspx . 12Single borrower status is measured based on whether the loan has only one borrower reported. If the loan reports more than one borrower, then it is classified as a coborrower loan. ingle borrower status may increase the likelihood of a borrower entering forbearance or delinquency to begin with, and single borrowers may also ve relatively more difficulty catching up on payments and recovering once in forbearance or delinquency. 13A borrower is “distressed” if they are delinquent or in forbearance on an auto loan or credit card and “not distressed” if they have an auto loan or credit card but are not delinquent or in forbearance on either product. 14Relative income quartile is measured based on the ratio of census tracttoMSA income, which comes from the American Community Survey (ACS ��3 CONSUMER FINANCIAL PROTECTIONBUREAUCOVID19 pandemic, includingrelatively lowincome borrowersand minority mortgage borrowers Using survey dataother research fromthePhiladelphia Fed reports that Black borrowers hadthe highest rateof mortgage forbearanceamong examinedracial and ethnic groups, with 13.4 percent being in forbearance at some point during the pandemic.Inthis report we usedata from the National Mortgage Database (NMDB),which is arandom1-20 sample ofclosedendfirstlien mortgages in the United StatesThe data includeborrowerlevel demographics and loan-level origination and performance information. Account status in the NMDB comes from cr

5 edit reporting data and, therefore, has
edit reporting data and, therefore, has some limitations that arise from the process of edit furnishing, especiallyduring public emergencieslikethe COVID19 pandemic. We analyze demographics for a sample of nearly 662,000 mortgage loans for owneroccupiedpropertiased on repoting throughMarch 2021 Our overall estimate of mortgage loans reported as in forbearance is 4.7 percentand 60+ day elinquency is 5 percent. The estimated rates of delinquency and forbearance are somewhat lower than estimates from other sourcesreferenced above, in particular sources usingmortgage servicing data. This difference likely reflectsdifferences in the underlying data and sample restrictions. For example, estimates of forbearance and delinquency that rely on data from mortgage servicers An, X., Cordell, L., Geng, L., Lee, K. “Inequality in the Time of COVID19: Evidence of Delinquency and Forbearance” February 2021. Federal Reserve Bank of Philadelphia. Available at https://www.philadelphiafed.org/consumerfinance/mortgagemarkets/inequalitythetimecovid evidencefrommortgagedelinquencyandforbearance . These findingsuse mortgage servicing and credit reporting data from Credit Risk Insight Servicing. LambieHanson, L., Vickery, J., Akana, T. “Recent Data on Mortgage Forbearance: Borrower Uptake and Understanding of Lender Accommodations” March 2021. Consumer Finance Institute, Federal Reserve Bank of Philadelphia. Available at https://www.philadelphiafed.org//media/frbp/assets/consumer finance/reports/21_02_cfi_researchbriefmortgageforbearance.pdf . These a

6 re based ona national sample of 1,172 h
re based ona national sample of 1,172 homeowners with mortgages. See National Mortgage Database Program, Federal HousingFinance Agency. https://www.fhfa.gov/PolicyProgramsResearch/Programs/Pages/NationalMortgageDatabase.aspxIn particular, for loans in a forbearance plan, some servicersmay report missed payments as current, report performance data as missing, or not report data at all, and delinquent loans may be more likely to have missing performance data than current loans. SeeCFPB Mortgage Performance TrendAbout the Data: How public emergencies affect the data. Consumer Financial Protection Bureau.Available at https://www.consumerfinance.gov/dataresearch/mortgageperformancetrends/aboutthedata/#anchor_how publicemergenciesaffectthedata . Account status is measured using data that is reported fromthe March 2021NMDB archive. We measure forbearance and delinquency based on the reported information for December 2020 through February 2021. We focus on mortgages for owner-occupied borrowers and exclude manufactured housing from the sample ��2 CONSUMER FINANCIAL PROTECTIONBUREAU1. IntroductionSince the beginning of the COVID19 pandemicthe number of borrowerswho arebehind on their mortgagehasincreased a level not seen since the height of the Great Recession in 2010any mortgage borrowershave taken advantage of forbearance programs that permit them to temporarily stop making mortgage payments. illions ofmortgage borrowersin the United Statesve entered forbearancesince the start of the COVID19 pandemic; hundreds of thousands morewere delinque

7 nt on their mortgages and did not obtain
nt on their mortgages and did not obtain forbearance, even though it was readily availableto most borrowerswho reported a COVIDrelated hardshipPublicly available numbers indicate that the total number of borrowers in forbearance has fallen substantially since the start of the pandemic with around4.9percent of active loans remainingin forbearancein addition,nearly 0.75percentof active loans being reported as30+ daysdelinquent and not in forbearanceas of March202 n this Special Issue Brief, explore the characteristics, including demographics, borrowers inforbearance,borrowers who weredelinquent but not in forbearance, andborrowers who were neither delinquent nor in forbearance (current”) during the COVID19 pandemic esearchers have examined the effects of the pandemic on housing, but there exists limited informationabout the characteristics and demographics of individual homeownersduringthe pandemicAccording to a recent Bureaureportbased on survey data, Black and Hispanic homeownerswere more than two times as likely as hite homeowners to be behind on mortgage paymentsas of December 2020 his is consistent with research from the Federal Reserve Bank of Philadelphia(Philadelphia Fed)using mortgage servicing and credit report data,whichshows that some groups of mortgage borrowers hadhigher rates of nonpayment during the Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, homeowners with GSE (Fannie Mae and Freddie Mac) and federallybacked mortgages have the right to request and obtain a forbearance for up to 180 days, and an extensio

8 n for another 180 days (for a total of 3
n for another 180 days (for a total of 360 days). Guidance from the GSEsand federal agenciesallow up to 18 months of forbearance. Privately-owned mortgages are not covered by the CARES Act, but many servicers and investors offer similar protections for those loans.Black Knighteports 4.9percent of active loans in forbearance as of March202Black Knight Mortgage Monitor, February 2021. Black Knight, Inc. Available at https://cdn.blackknightincom/wp- content/uploads/2021/04/BKI_MM_Feb2021_Report.pdfhe Mortgage Bankers Associationeports 4.9percent of active loans in forbearance as of March2020. DeSanctis, A, “Share of Mortgage Loans in Forbearance Decreases to 4.9 Percent.” Mortgage Bankers Association, Apr 5 2021 Available at https://www.mba.org/2021ress releases/april/sharemortgageloansforbearancedecreasesto490percentThe estimated number of active loans in forbearance was over 8.5 percent in June2020. DeSanctis, A, “Share of Mortgage Loans in Forbearance creases to 8.55Percent.” Mortgage Bankers Association, June 15, 2020.Available at https://www.mba.org/2020pressreleases/june/sharemortgageloansforbearanceincreasesto855. The analysisis based on Pulse survey data from the U.S. Census Bureau. See Wong, K. “Housing Insecurity and the COVID19 Pandemic,” March 2021.Consumer Financial Protection Bureau.Available at https://files.consumerfinance.gov/f/documents/cfpb_Housing_insecurity_and_the_COVID19_pandemic.pdf. ��1 CONSUMER FINANCIAL PROTECTIONBUREAUThis Special Issue Brief was preparedby:Erik Durbin Greta LiDavid L

9 ow Judith Ricks CONSUMER FIN
ow Judith Ricks CONSUMER FINANCIA L PROTECTION BUREAU | MAY 2021 Characteristics of Mortgage Borrowers During the COVID 19 Pandemic CFPB Office of Research Special Issue Brief ��7 CONSUMER FINANCIAL PROTECTIONBUREAUFIGURE 1:RACIAL AND ETHNIC DISTRIBUTION BY PERFORMANCE GROUP 61717813122015110%10%20%30%40%50%60%70%80%90%100%Forbearance60+ Days DelinquentCurrent White Black Hispanic Other orrowerswhowere in forbearance or delinquent also had higherestimatedLTVratiosmeaning that these borrowers may have less equity compared to borrowers whose loans were current, all else equal(Figure 2)15 Among borrowers in forbearance, about 1 percent had an LTV greater than 95 percent and percent had an LTV between 80 and 95percent. Among elinquent borrowers, 5 percenthad an LTV above 95 percentand percent had an LTV between 80 and 95percent. Among borrowers in forbearance or delinquent, nearly 50 percenthad an LTV above 60percenthereas a largemajority of borrowers whowere current had an LTV at or below 60percentGiven the higher LTV shares, on average, borrowers whowere in forbearance or delinquent maymoreat risk of ending up underwater on their mortgage loans if they are not able to recover after experiencing a forbearance or delinquencyon their mortgage loan. 15Current LTV is estimated using information on the current firstlien loan balance and changes in the local home price index to estimate a current property value. ��8 CONSUMER FINANCIAL PROTECTIONBUREAUFIGURE 2:DISTRIBUTION OF CURRENT LOANTOVALUE (LT

10 V) RATIO RFORMANCE GROUP 5049663331261
V) RATIO RFORMANCE GROUP 50496633312616150%10%20%30%40%50%60%70%80%90%100%Forbearance60+ Days DelinquentCurrent = 60 60.01 - 80.00 80.01 - 95.00 � 95 ext, we report on other factors that can inform whether borrowers may have difficulty catching on their mortgage payments (Table 1)The data show that single borrowermortgage loansmade up a significantly higher share of borrowerswhowere in forbearance (60 percent) or delinquent (69percent), compared to the current group (51 percent). Having only one borrower on a mortgage loan may increase the likelihood of that loan ending up in forbearance or delinquent. In addition to difficulties avoiding forbearance initially, these borrowers may have more difficulty recovering once the loan is in forbearance or delinquentSimilarly, the data show that percent of delinquent borrowers were reported as delinquent prior to the pandemic in February of 2020. Borrowers whowere delinquent prior to the pandemic and whoremainedin delinquency as reported through March 2021may have increaseddifficulty bringing their loans current, compared to borrowers in forbearance, for which only 8 percent of loans were reported as delinquentin February 2020 We also use a proxy for borrowerdistress that relies on a borrower’s performance status on nonmortgage products. We describe borrowers as“distressed” if they are delinquent or in forbearance on an auto loan or credit card and “not distressed” if they have an auto loan or credit card but are not delinquent or in forbearance on either product. We focus on au

11 to loans and credit cards because, unlik
to loans and credit cards because, unlike with mortgages or student loans, forbearance is more likely to be discretionary because there are not governmentsponsored forbearance programs for these products. Distressed borrowers madeup roughly 25percent of borrowers in forbearance and ��6 CONSUMER FINANCIAL PROTECTIONBUREAU2. Borrower Charcteristics The purpose of the analysis in this section is to improveunderstanding about the population of borrowers experiencingforbearance or delinquency during the pandemic. report characteristics for three groupsas reported through March 2021: borrowers with mortgage loans that werein forbearance, borrowers with mortgage loans that were60+ days delinquent, and borrowers with mortgage loans that were current. The data showsignificant differences both across and within performance group, which we present and discuss below. The data show that racial and ethnic compositionvaried significantly by performance group(Figure 1)White borrowers, generally, made up the largest share in each group, consistent with overall demographics of homeownership. However, the share of current borrowers that is hite was substantially higher (78 perent)compared to the forbearance and delinquent groupsfor which Black and Hispanic borrowers made up a larger share.Black borrowers made up a relatively higher share of those in forbearance (13 percent) and delinquentbut not in forbearance(12 percent) than they didborrowers who were current (6 percent Similarly, the share ofHispanic borrowerswas relatively largeramong borrowers in forb

12 earance (20 percent) and delinquent (per
earance (20 percent) and delinquent (percent), compared to the share of current borrowers (percent)that was Hispanic The share of otherrace borrowers was smallest for all three groups, making up 7 percent of borrowers in forbearance, 3 percent of delinquent borrowers, and 6 percent of current borrowers. ��9 CONSUMER FINANCIAL PROTECTIONBUREAUpercent of borrowers whowere delinquent. In contrast, only 6 percent of borrowers that were currentwerealsodistressed TABLE 1:PERCENTOF BORROWERS IN REPAYMENT CATEGORIES WITH DIFFICULTY TO PAY MEASURES - Forbearance 60+ Days Dlit Current Single Borrower 59.56 *** 68.82 *** 5 0.8 1 Delinquent (30+) in Feb. 2020 8 .32 *** 5 8.9 9 *** 1 .25 Distress Proxy 25.40 .32 .49 Note: The asterisks note if there is a significant difference between the mean of theforbearance ordelinquent group compared to the current group. pvalue 0.001 ***, pvalue 0.05 **, pvalue 0.01 *.Tractlevel demographics also varied by performance group(Figure 3)Borrowers with loans in forbearance 36 percent) or delinquent (29percent)were more likely to live in majorityminority ensus tractscompared to current borrowers(21 percent)Independent of a tract’s majorityminority status, borrowers with loans in forbearance or delinquentwerealso more likely to live in relatively lowerincome census tractsas measured by relative income quartileAmong delinquent borrowers, roughly 36percent lived tracts in the lowest income quartile(Q1)28percent lived in tracts in the second income quarti

13 le(Q2)21 percent lived in tracts in the
le(Q2)21 percent lived in tracts in the third income quartile (Q3), and percent lived in tracts inthe highest income quartile (Q4). This relationship is not as pronounced for borrowers in forbearance, although a larger share of these borrowers lived in tractsin the lowest income quartile (27percent). ��18 CONSUMER FINANCIAL PROTECTIONBUREAUTABLE 3:PERCENTOF BORROWERS IN FORBEARANCE OR 60+ DAYS DELINQUENT IN FEBRURARY BY BORROWER CHARACTERISTICS (CURRENT EXCLUDED) Borrower Characteristic In Forbearance 60+ Days Delinquent White 3.67 0.50 Black9.2298 Hispanic 37 0.72 Other5.5826 LTV: = 60 3. 41 LTV: 60.01 - 80.005.9364 LTV: 80.01 - 95.00 8.94 99 LTV:� 9515.307.37 Singleborrower 39 0.73 Coborrowers3.35 Delinquent (30+) in Feb. 18.60 15.40 CurrentFeb. 4.3523 Distressed 15.30 3.39 Not Distressed3.21 MajorityMinority Tract 67 0.74 Not a MajorityMinority Tract3.8249 Income: Q1 5.50 0.80 Income: Q24.4763 Income: Q3 4.23 45 Income: Q44.4230 ��17 CONSUMER FINANCIAL PROTECTIONBUREAUTABLE 2:AVERAGE CHARACTERISTICS OF BORROWERS WITH LOANS IN FORBEARANCE, 60+ DAYS DELINQUENT, AND CURRENTAS OF FEBRUARY 2021 - Forbearance 60+ Days Delinquent Current White 60.88 71.25 77.96 Black12.6911.54.03 Hispanic 19.78 14.58 10.50 Other6.652.635.52 LTV: = 60 49.51 49.23 66.17 LTV: 60.01 - 80.0033.0830.6625.54 LTV: 80.01 - 95.00 16.28 15.47 .02 LTV:� 951.134.65.28 Single Borrower 59.56 68.82 50.81 Del(30+), Feb. 2020 8.3258.99.25 Distress Proxy 25.40 .32 .49 MajorityMinority Tract35.6629.3020.83 Income: Q

14 1 26.53 36.50 24.68 Income: Q223.5127.50
1 26.53 36.50 24.68 Income: Q223.5127.5025.21 Income: Q3 23.87 20.75 25.04 Income: Q426.10.2525.07 o. of Obs. 30,940 3,614 627,441 Note: Numbers represent percentages(other than number of observations). The asterisks note if there is a significant difference between the mean of theforbearance ordelinquent group compared to the current group. pvalue 0.001 ***, pvalue 0.05 **, pvalue 0.01 *. ��16 CONSUMER FINANCIAL PROTECTIONBUREAUAPPENDIX A:VARIABLE DEFINITIONSUsing data from NMDB, we define the following variables that are used in this report:1. Race defined based on the primary borrower. White is nonHispanic and white. Black is nonHispanic and black, including borrowers that reported two races with one being BlackHispanic is based on reported ethnicity and can be for any race (white, black, or other). Other includes nonHispanic borrowers reported as American Indian, Asian, Native Hawaiian/Pacific Islander, or multiple races. 2. Current LTV is estimated using information on the currentfirstlienloan balanceand changes in the local home price index to estimate a current property value. 3. Single borrower status is measured based onwhether the loan has only one borrowerreportedIf the loan reportsmore than one borrower, then it is classified as a coborrower loan. 4. Delinquency status in February 2020 is measuredby the mortgage loan account status. Specifically, whether the account is reported as 30+ days delinquent in February 2020, which is one month prior to the start of the COVID19 pandemic. 5. Distress is measuredat the household level

15 , based on the borrower’s performan
, based on the borrower’s performance on auto loans and credit cards. A borrower “distressed” if they are delinquent or in forbearance on an auto loan or credit card and “not distressed” if they have an auto loan or credit card but are not delinquent or in forbearance on either product. We focus on auto loans and credit cards because, unlike with mortgages or student loans, forbearance is more likely to be discretionary because there are not governmentsponsored forbearance programs for these products. 6. elative incomequartileis measured based on the ratio ofcensus tractMSAincomewhich comes from the American Community Survey (ACS) ��15 CONSUMER FINANCIAL PROTECTIONBUREAU4. ConclusionBy early 2021a yearinto the pandemic, a significant share ofmortgage borrowers remained in forbearance programs or had delinquent loans. Many of these borrowers likely tered into forbearance at the start of the pandemic, between March and May of 2020, hen the largest wave of forbearances took place. Among delinquent mortgage loans, a significant share wasdelinquent prior to the pandemic with the delinquency continuing throughoutthe economic crisis As programs designed to aid mortgage borrowers during the pandemic wind downorrowers in forbearance programs or who are delinquent may be disproportionately at risk oflosing their home. The Bureau’s analysis of mortgage data shows that asignificant share of these borrowers were minoritieslived in majorityminority tractsandlived in relatively lowerincome areasMany of these borrowersalsom

16 ay be singleincome households, making it
ay be singleincome households, making it more difficult for themto recover from income shocks. A significant share of borrowers also showed distress in terms of nonmortgage productsIn addition, the fact that many delinquent borrowers were delinquent prior to the pandemicmay mean it is even more difficult for those borrowers to recover afterthefact. Given the borrowercharacteristics associated with forbearance and delinquency,these borrowers also mayhave difficultyrecovering from the extended period of forbearance or delinquency. ��14 CONSUMER FINANCIAL PROTECTIONBUREAUFIGURE 7:PERCENTOF BORROWERS IN FORBEARANCE OR 60+ DAYS DELINQUENT BY MAJORITYMINORITY TRACT STATUS (CURRENT EXCLUDED) 7.673.820.740.490.001.002.003.004.005.006.007.008.009.00Maj-Min TractNot Maj-Min TractPercent of Group (%) In Forbearance 60+ Days Delinquent inally, living in a relatively lowerincome tract was associated with a greater likelihood of forbearance and delinquency (Figure ). Borrowers in the lowest quartile of tractMSA income, Q1, were 2 times more likely to be in forbearance and 2.7times more likely to be delinquent compared to borrowers in the highest quartile of tractMSA income, Q4. FIGURE 8:PERCENT OF BORROWERS IN FORBEARANCE OR 60+ DAYS DELINQUENT BY TRACTTOMSA INCOME QUARTILE (CURRENT EXCLUDED) 4.424.234.475.500.300.450.630.800.001.002.003.004.005.006.00Percent of Group (%) 60+ Days Delinquent In Forbearance ��13 CONSUMER FINANCIAL PROTECTIONBUREAUTract characteristics also matter with respect to borrower experiences. Figure shows that

17 roughly 7.7 percent of borrowers living
roughly 7.7 percent of borrowers living in majorityminority tracts were in forbearanceversus 3.8percent in nonMajorityminority tractsMajorityminority tract borrowers were also substantially more likely to be delinquent (0.7percent) compared to borrowers not in a majorityminority tract (0.5 percent). FIGURE 6:PERCENT OF BORROWERS IN FORBEARANCE OR 60+ DAYS DELINQUENT BY PAYMENT DIFFICULTYMEASURES(CURRENT EXCLUDED) 4.3518.603.8115.303.875.390.2315.400.213.390.350.730.002.004.006.008.0010.0012.0014.0016.0018.0020.00Current Feb. 2020Del. (30+) Feb. 2020Not DistressedDistressedCoborrowersSinglePercent of Group (%) 60+ Days Delinquent In Forbearance ��12 CONSUMER FINANCIAL PROTECTIONBUREAUBorrower home equitywas negativelyassociated with a borrower’s likelihood of experiencing forbearance delinquency. Roughly 3.percent of high equityborrowers those with LTV at or below 60 percent – were in forbearance and 0.4 percent were delinquent. Among low equityborrowers ith n LTVgreater than 95percent – tmost riskgroup of borrowers – roughly15.3percent were in forbearance and 4 percent were delinquent. Borrowers with relatively low equity (LTV between 80.01 and 95 percent) were 2.5 times more likely to be in forbearance and 2.4times more likely to be delinquentcompared to borrowers with high equityThese differences fall to 1.7- and 1.6-timesgreater likelihood of forbearance and delinquency, respectively, for borrowers with relatively higher equity LTV between 60.01 and 80.00percent). FIGURE 5:PERCENT OF BORROWERS IN FORBEARANCE OR 6

18 0+ DAYS DELINQUENT BY LOANTOVALUE RATIO(
0+ DAYS DELINQUENT BY LOANTOVALUE RATIO(CURRENT EXCLUDED) 3.535.938.9415.300.410.640.997.370.002.004.006.008.0010.0012.0014.0016.0018.00= 6060.01 - 80.0080.01 - 95.00&#x-99.; 00; 95Percent of Group (%) 60+ Days Delinquent In Forbearance Factors associated with payment difficulty, including single borrower status, delinquency status in February 2020, and nonmortgage financial distress,also were associated with higher likelihoods of forbearanceand delinquency. Among loans with single borrowers, 5.4percent were in forbearance, whereas only 3.9 percent of loans with coborrowers were in forbearance. Roughly 0.7 percent of single borrower loans and 0.4 percent of coborrower loans were delinquent. Comparing borrowers that were 30+ days delinquent on their mortgage in February 2020, the data show that 18.6percent were in forbearance and 15.4percent were delinquent. ese areseveral timesgreater than the shares among borrowers who were current on their mortgage prior to the pandemic in February 2020 (4.3 percent in forbearance and 0.2 percent delinquentFinally, among borrowers whoexhibitdistress based on nonmortgage credit products, .3 percent were in forbearance and 3.4percent were delinquent, compared to 3.percent in forbearance and 0.2 percent delinquent among nondistressed borrowers. ��11 CONSUMER FINANCIAL PROTECTIONBUREAU3. Differences in Borrower ExperiencesIn this section, we examine the likelihood experiencingforbearance delinquencyduring the pandemicacross groups of borrowers with different demographic characteristics.These differences ref

19 lect the same correlations behind the re
lect the same correlations behind the results in the previous section andprovide further perspective on how the pandemic may be affectingdifferent groups of mortgage borrowersrrowers’experiences, as measured by whether theloans werein forbearance or delinquent, varied substantially based on borrowers’ demographic characteristicsBorrower experiencesdifferedsubstantially by race. Roughly 3.percent of White borrowers werein forbearance and 0.percent were delinquent. Black and Hispanic borrowers were much more likely to experience either of these outcomes. Black borrowers were 2.5times more likely to end up in forbearance (9.2 percent) and twotimes morelikely to end up delinquent 1.0percent) compared to hite borrowers. Similarly, Hispanics were 2.3 times more likely to end up in forbearance 4 percent) and about 1.5times more likely to end up delinquent (7 percent)Otherrace borrowers were lso more likely to experience forbearance compared to Whites butwere less likely to end up delinquent. FIGURE 4:PERCENT OF BORROWERS IN FORBEARANCE OR 60+ DAYS DELINQUENT BY RACE AND ETHNICITY (CURRENT EXCLUDED) 3.675.588.379.220.500.260.720.980.001.002.003.004.005.006.007.008.009.0010.00WhiteOtherHispanicBlackPercent of Group (%) 60+ Days Delinquent In Forbearance ��10 CONSUMER FINANCIAL PROTECTIONBUREAUFIGURE 3:PERCENTOF BORROWERS LIVING IN MAJORITYMINORITY TRACTS AND PERCENT OF BORROWERS LIVING IN EACH QUARTILE OF TRACTTOMSAINCOME BY PERFORMANCE GROUP 36272424262936282115212525252510152025303540Maj-Min TractPercent (%) Forbearance 60+ Days Delinq