Inequality in the Time of COVID-19: Evidence from Mortgage Delinquency and Forbearance

Xudong An, Larry Cordell, Liang Geng, Keyoung Lee
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引用次数: 42

Abstract

Using a novel database that combines mortgage servicing records, credit-bureau data and loan application information, we show that lower-income and minority borrowers have significantly higher nonpayment rates during the COVID-19 pandemic, even after controlling for conventional risk factors. A difference-in-differences analysis shows how much the pandemic has exacerbated income and racial inequalities. We then find that government and private-sector forbearance programs have mitigated these inequalities in the near term, as lower-income and minority borrowers have taken up the short-term debt relief at higher rates. Finally, we examine modification options for an estimated 2.8 million loans in forbearance, most with terms expiring by mid-year 2021.
COVID-19时期的不平等:来自抵押贷款拖欠和延期的证据
我们使用了一个结合抵押贷款服务记录、信用局数据和贷款申请信息的新数据库,结果表明,即使在控制了传统风险因素之后,低收入和少数族裔借款人在COVID-19大流行期间的拖欠率也明显较高。一项差异中差异分析显示,疫情加剧了收入和种族不平等的程度。然后我们发现,政府和私营部门的延期计划在短期内缓解了这些不平等,因为低收入和少数族裔借款人以更高的利率接受了短期债务减免。最后,我们研究了约280万笔延期贷款的修改选项,其中大多数贷款的期限将在2021年年中到期。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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