Installment Loan Borrowers Being Saddled With Unnecessary Insurance Add-Ons

Ouch! Propublica and Marketplace just published a story about installment loans…One borrower who is profiled in the story thought she was paying 90% APR, but with extra “add-on” fees, her effective interest rate was 182%!!!

Advertisements

Second Wave of Independent Foreclosure Review Checks Mailed Out on April 19, 2013

The Office of the Comptroller Currency announced today that a second wave of 1.4 million checks (totaling $1.2 billion) is being mailed out today to homeowners and former homeowners as compensation under the Independent Foreclosure Review.   A total of 2.8 million checks have been sent out, worth $2.4 billion total.  According to the press release, 90% of the 4.2 million checks will be sent out by the end of April.  However, some borrowers will have to provide additional information and their checks will not be sent out until later this summer.

ForeclosureHelp reported last week about Congressional hearings on the many, many mistakes made throughout the Independent Foreclosure Review, including a poor outreach campaign, $2 billion being spent on “independent” consultants, and a decision in January to scrap the reviews for most of the original 14 banks and servicers.  This was replaced with a “program” of the banks deciding how badly they had injured a homeowner, and then the banks or servicers assigning a homeowner or former homeowner to a category, which would then determine their amount of compensation.

As we reported earlier this week, when homeowners first attempted to cash their checks, some of the checks were returned because of insufficient funds.

Senator Elizabeth Warren (D-MA) and other senators sharply questioned the consultants during a hearing on April 11th (Outsourcing Accountability? Examining the Role of Independent Consultants) and another hearing about the reviews took place on April 17th (Helping Homeowners Harmed by Foreclosures: Ensuring Accountability and Transparency in Foreclosure Reviews, Part II).  Senator Warren questioned whether it made sense to pay $2 billion for consultant’s work that was never actually used to determine compensation for the homeowners and former homeowners.

Editor’s note: Foreclosure Help is a program funded by the city of San Jose through a HUD Community Development Block Grant and the city of Sunnyvale, and we can directly assist homeowners  and tenants in San Jose and Sunnyvale who are facing foreclosure.  However, we are unable to assist homeowners/former homeowners in other cities and states.  If you need housing counseling, we suggest using the interactive map on HUD’s website and if you have questions about the information below, please contact Rust Consulting (1-888-952-9105).

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Josethrough a HUD Community Development Block Grant and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

fair_housing_logo

FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

It is the policy of ForeclosureHelp not to discriminate against any person because of that person’s race, color, religious creed, sex (gender), sexual orientation, marital status, national origin, ancestry, familial status (households with children under the age of 18), source of income, disability, medical condition or age. Color or “ethnic group identification” means the possession of the racial, cultural or linguistic characteristics common to a racial, cultural or ethnic group, or the country or ethnic group from which a person or his or her forebears originated. As required by law, we agree to take the affirmative steps needed to further fair housing.

ForeclosureHelp will consider any and all requests for reasonable accommodation in the application of its rules, policies, practices, and services, and in the use of its physical structures, in accordance with the requirements of state and federal laws. You can ask ForeclosureHelp to consider any reasonable accommodation you may have. Please consult with the Program Manager to request this accommodation.

Deadline for US Dept. of Justice Settlement with Countrywide Extended Until April 26, 2013

Countrywide Settlement

UPDATE: Deadline extended until April 26, 2013, for more information, visit the DOJ website: English version   Spanish version.

By Sean Coffey, Program Manager at Foreclosure Help

This is a reminder that homeowners who received a letter about a US Department of Justice Settlement with Countrywide Financial should send in their registration forms soon because the deadline has been extended to April 26, 2013. 

press release from the US Department of Justice explains why Countrywide settled with the Department of Justice:

The $335 million settlement fund being administered by Rust was created as part of resolving the United States’ allegations that Countrywide Financial Corporation and its subsidiaries engaged in a widespread pattern or practice of discrimination against more than 200,000 qualified Hispanic and African-American borrowers across the country who received mortgage loans from 2004 through 2008, as well as allegations of discrimination on the basis of marital status by encouraging non-applicant spouses to sign away their rights in jointly-held property when the applicant spouse took out a loan in his or her own name. Letters will go out at a later date to borrowers potentially affected by the alleged marital status discrimination.

There are 200,000 homeowners who are eligible to recover money from the settlement in this case, and the registration form deadline is February 28, 2013.

How do I know if I’m eligible?

Eligible homeowners would have received a letter from the US Department of Justice, the Settlement Administrator, or Countrywide/Bank of America.    Individuals with questions about the United States v. Countrywide Financial Corporation lending discrimination settlement may contact Rust, in English or Spanish, by telephone at 1-800-843-5148 or by email at info@CWFLSettlement.com.

When will the money be sent?

According to the US Department of Justice press release:  “In mid 2013, the Settlement Administrator plans to mail a letter with the exact payment amount and a release form to those who return the response form.”

How do I know this is legitimate?

Good question, there are still lots of scam artists who send official looking letters.

According to the US Department of Justice:

All mailings from Rust related to the lending discrimination settlement will have the seal of the United States Department of Justice and use the return address “Countrywide Fair Lending Settlement Administrator, c/o Rust Consulting, PO Box 8048, Faribault, MN 55021,” and will ask victims to return response forms to that address. Any potential scams related to the Countrywide lending discrimination settlement should be reported to Rust by telephone at 1-800-843-5148, or to the Department of Justice at 202-514-4713.

Where can I get more information?

Notification Begins to Borrowers Eligible for Payments from $335 Million Lending Discrimination Settlement Between the Department of Justice and Countrywide Financial Corporation (United States v. Countrywide Financial Corp., et al. (C.D. Cal., December 2011)

Comienza la notificación a prestatarios con derecho a recibir pagos del fondo de resolución de $335 millones por discrimen en la otorgación de préstamos entre el Departamento de Justicia y Countrywide Financial Corporation ((United States v. Countrywide Financial Corp., et al. (D.C. Cal., diciembre 2011))

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.

Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.

Nuestros consejeros aprobados por HUD puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.

Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.