- CFPB Releases Report Highlighting Mortgage Issues Faced by Older Americans
- May 19, 2014 | Authors: Peter L. Cockrell; Brett M. Kitt; J. Scott Sheehan
- Law Firms: Greenberg Traurig, LLP - McLean Office ; Greenberg Traurig, LLP - Washington Office ; Greenberg Traurig, LLP - McLean Office ; Greenberg Traurig, LLP - Houston Office
On May 7th, the CFPB released a snapshot report highlighting perceived challenges faced by older Americans regarding their mortgage debt.1 The report’s analysis, which is based on data gathered from the Census Bureau, the Federal Reserve and consumer complaints received by the CFPB, identified the following issues:
More seniors with mortgage debt. According to the report, more seniors have outstanding mortgage debt than in previous decades.
Greater median debt amount. The median outstanding balance owed on mortgages held by older Americans increased 82 percent from 2001 to 2011. The report also found that more than half of retired homeowners spend a third or more of their household income on housing related costs.
Delinquency and foreclosure rates increased. Over the period from 2007 to 2011, the percentage of seriously delinquent (more than 90 days delinquent) homeowners aged 65 to 74 increased from 0.85 percent to 4.96 percent. For homeowners over 75 the percentage increased from 1.01 percent to 5.87 percent.
In conjunction with releasing the report, the CFPB also issued a consumer advisory advising older Americans on how to balance servicing their mortgage debt with their retirement income and other expenses.2
1 See the report at http://files.consumerfinance.gov/f/201405&under;cfpb&under;snapshot&under;older-consumers-mortgage-debt.pdf.
2 See the consumer advisory at http://www.consumerfinance.gov/blog/consumer-advisory-3-things-to-keep-your-retirement-plan-on-track/.