New report highlights housing

from The Power Is Now Magazine | April, 2021

Mortgage Rates Need to cool down

NEW REPORT HIGHLIGHTS HOUSING INSECURITY AND THE NEED FOR AGGRESSIVE ACTION

In just a few months from now, over 11 million people, nearly 10 percent of the U.S. households, risk their homes through evictions and foreclosures. According to the Consumer Financial Protection Bureau (CFPB), an analysis of the impacts of the pandemic on housing shows that the positive actions that were enforced by both the public and private sectors have so far, prevented people from losing their homes during the public health crisis. But, the analysis still shows that over 11 million people are still at some sort of risk. Simply put, the time to act is now because the country has less time to prevent this huge number of people from losing their homes. Housing is the family’s basic foundation. Stable housing facilities provide the roots for people to grow, financially and otherwise. When we have stable homes, stable neighborhoods spring to life thus forming stable communities. When people lose their homes, their lives, their health and so much more are disrupted. This becomes even worse to the families of color and the Hispanic community who are yet to recover from the last recession. These communities have been and are still facing disproportionate access to financial and health resources pre and post-COVID.

PREPARING FOR THE WORST

The foreclosure moratorium keeps getting extended time and time again and this is putting more people at risk. The more the government extends these moratoriums, the more people feel safe and secure, hence enter into a relaxation mode.

The mass of evictions and foreclosures looming in the housing market will put millions of families into the streets and when this happens, it will have dire repercussions throughout the housing market and economy at large.

CFPB was created following the crisis of 2007-08, and congress made it possible for the agency to address issues such as the current looming housing crisis. CFPB steps in and uses its authority to keep people in their homes by coordinating public and private efforts to save homes.

“And in those unfortunate instances where families can no longer stay in their homes, we will do everything we can to ensure that people are treated with dignity, families are able to preserve as much of their equity as possible, and everyone can make a smooth transition to other safe, secure, and affordable housing.” - Dave Uejio

Dave also notes that while the CFPB is doing everything in its power to protect homeowners and renters, mortgage servicers and landlords are also working hard to keep people in their homes. He says that the many lenders the agency has spoken to understand that the last housing chaos wasn’t good and therefore, most are already working to engage with the homeowners

in forbearance and the many who are still struggling to make payments.

“We all need to work together to respond to and recover from the pandemic. All of us will benefit from a solution that keeps people in their homes during this crisis and ensures a smooth path forward for everyone when life and our economy return to normal.” He added.

WHAT WE NEED TO DO

The first step that the government needs to do is to protect its most vulnerable citizens. Dave Uejio says that he has directed the policy teams at the CFPB to consider all of CFPB’s available tools in order to preserve the people’s homes and also protect them from unncessasry foreclosure. He also affirms that the agency is continuing to work hand in hand with other government agencies and partners including the U.S. Department of Housing and Urban Development, Agriculture, and the Veterans Affairs as well as the Federal Housing Finance Agency (FHFA) on several measures that will ensure homeowners receive the necessary assistance they need in order to avoid unnecessary foreclosures.

“We want families to keep their homes where that makes sense and, where it doesn’t, that families have a chance to explore other options that let them preserve as much of their investment as possible.”

WHAT IF A FAMILY IS UNABLE TO MAINTAIN THEIR HOMEOWNERSHIP STATUS?

Dave affirms that teams at the CFPB will work to establish an orderly, human, and equitable outcome for all families. Families need to be allowed the time to find the best buyers for their homes, time to find and secure alternative housing which is safe, and the time to pack and move. All this cannot be achieved while they are being harassed.

“No family should be forced through foreclosure without a chance to explore options, including the opportunity to sell their home for fair market value. At a time when many homeowners have accumulated wealth and equity in their homes, making sure families have a chance to recover and grow their investment is particularly important.”

AVAIL EVERY TOOL TO HOMEOWNERS AND RENTERS NOW!

More often than not, homeowners and renters struggle to understand the options they have at their As such, the CFPB in close collaboration with other federal agencies is providing homeowners and renters with the resources they need now. This includes education programs that will help homeowners and renters understand their rights and protections, making them aware of the scams, and helping them learn the best ways to request forbearance or mortgage assistance.

“We know that many people haven’t requested the relief for which they may be eligible. For example, roughly 263,000 families are at least 90 days behind on their mortgage and not in forbearance. The CFPB will engage with homeowners to help them know they have options, including sharing information with our most vulnerable consumers and communities. We will continue to share updates as we expand our work in this area.”

BOTTOM LINE

We are still not safe. The report from CFPB shows that more groundwork is needed and thus sets the stage for CFPB to develop more options to head of the national foreclosures and eviction crisis. Dave confirms that more work is being done at the agency level.