Mortgage and Credit Forbearance After Natural Disaster

WHEREAS, Black and Brown Americans are more likely than their white counterparts to experience personal loss, property damage, delayed utility restoration, food insecurity, homelessness, and economic hardship after natural and manmade disasters with Black survivors seeing and average wealth decrease of $27,000, while their white American survivors see an average increase of $126,000; and 

WHEREAS, Most Black homeowners will need mortgage forbearance – being temporarily relieved of the obligation to make mortgage payments – to survive and rebuild their lives, yet are less likely than their white counterparts to be given mortgage forbearance; and 

WHEREAS, The long-term credit impact for Black homeowners given mortgage forbearance is negative, while the impact for white homeowners is positive, depending on how the lender reports it to the credit bureaus. 

THEREFORE, BE IT RESOLVED, that the NAACP urges all financial institutions, and federal agencies, to enact forbearance terms that ensure equitable financial support for those impacted by natural and manmade disasters. 

BE IT FURTHER RESOLVED, Federal Housing Finance Agency (FHFA), the U.S. Department of Housing and Urban Development (HUD), and Congress to initiate policies and legislation to mandate that lenders report loan modifications to credit reporting agencies indicating that those accounts are current and any mortgage forbearance will not negatively impact on credit worthiness including FICO score, Vantage Score 4.0, and the lending decision. 

BE IT FINALLY RESOLVED, that the NAACP will support federal legislative efforts for more stringent forbearance regulations and standards that protect the rights of disaster victims from discriminatory treatment.