Minorities represent 33% of defaulters.
Photo: Spencer Platt / Getty Images
The Hispanics and African Americans with home loans are the most delinquent and those who have requested the most moratoriums amid the outbreak of the covid-19 pandemic, according to two reports from the Consumer Financial Protection Office (CFPB, in English) released this Tuesday.
According to the report by the entity “Characteristics of mortgage borrowers during the COVID-19 pandemic,” Hispanics and African Americans are the 33% of those who have applied for mortgage moratoriums and 27% of delinquent borrowers, when in general terms they constitute 18% of those who have a mortgage.
“Communities of color have been hard hit by the pandemic, and the latest data shows that many borrowers continue to suffer.”CFPB acting director Dave Uejio said in a statement, adding that there had been no levels of mortgage arrears since the Great Recession.
The agency noted that in March of this year they have received more mortgage claims than any other month since April 2018, and that “the number of borrowers who report that they have difficulty making their payments is also trending upward.”
There are several studies that account for the disproportionate effect that minorities have faced in the face of the covid-19 pandemic, something that the United States Secretary of the Treasury, Janet Yellen, has agreed on.
At the end of March, Yellen predicted that the economic crisis caused by the covid-19 pandemic will affect Latinos more than other minorities in the country, although he said that his companies will lead the recovery.
“At the end of the day it will probably be true that the pandemic economy follows the historical trend and hits the Hispanic community harder than other groups, although when we review the data I do not think the effects will last that long,” Yellen said in an intervention at the Hispanic Chamber of Commerce’s annual virtual conference.
Yellen recalled the stimulus plan of 1.9 billion dollars signed by President Joe Biden, after being approved by Congress, and that includes, among others, funds for the payment of rents and mortgages.
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