Bankruptcy Chapters

A recent report from CreditBloggers indicates that the Consumer Financial Protection Bureau (CFPB), the new government body created by the Obama administration to improve consumer protections in the United States, plans to create an easy-to-understand tool that will allow potential homeowners to compare the terms of various mortgage loans with greater ease.

Here’s a look at some of the details.

Easier-to-Understand Mortgage Documents and More

• More transparency in lending: According to a press release from the CFPB, the organization plans to join forces with state enforcers and banks to improve transparency in lending tools such as mortgage documents, student loans and payday loans. The goal of this partnership is to better equip consumers with the tools needed to understand loans before they take on such burdens.
• Clarification of mortgage options: One of the CFPB’s specific goals is to provide consumers with an easy-to-understand comparison sheet for mortgage loans. The

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Tags: Consumer, Consumer Protections

Against a backdrop of improvements in unemployment, a rise in Obamas approval rating and warnings of yet more foreclosure problems looming for 2011,  about 200 workers from at least three unions protested against one of the nations largest homebuilders by briefly interrupting a meeting and taking over the stage at a mortgage bankers conference on Jan.  19.

Tags: 2011, 2011 Better

In the last few years, lawmakers in many states have taken on payday loans as a pet cause, passing legislation that outlaws or severely limits what these predatory lending institutions can charge and how they can operate.

But a recent post at CreditBloggers points out that many payday lending operations are still thriving, for a number of reasons. Here’s a look at the latest payday lending landscape and a reminder of just how expensive these seemingly innocuous loans actually are.

Restrictions on Payday Lending

In recent years, state lawmakers have put a variety of limits on how payday loan stores can operate:

• Ohio: State legislators limited payday lending interest rates to 28 percent (a significant decrease from the 400+ percent some lenders charge annually). The legislation affected the payday lenders, naturally, but apparently did not result in their flight from the state.
• Montana: In November’s election, 72 percent of voters reportedly voted to make payday lending illegal in the state, and a new measure that went into effect on the first day of 2011 limits interest rates to 36 percent. The

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Tags: Loans, Payday Loans

This personal bankruptcy story was posted on the internet in May of 2009 as a comment in a discussion on bankruptcy: “In 2003 I was laid off from my job. The bank I worked for was purchased by another bank and my position was eliminated. I worked at odd jobs for years while searching for something permanent. I had three credit card accounts and a car loan. My credit card account balances were all very low but I could not afford anything but rent, utilities and gasoline. My credit card payments fell behind and the late charges and climbing interest accumulated until I had a large amount of debt. My car was repossessed. Three and one-half years ago I moved to another state and stayed with a relative. I found a good position and was able to pay some of my bills down. Last December the company I worked for was sold to another company and my position was eliminated again. I had enough money to survive for five months. Now the money has run out and I am facing eviction. I have to file bankruptcy because the creditors are calling me and trying to get leans and judgments. I

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Tags: Bankruptcy

Recent news reports have forecasted a significant increase in the rate of mortgage foreclosures across the country in the first month of 2011. According to National Public Radio, the forces that held foreclosures in check for the final months of 2010 are no longer at play and this year should see foreclosures picking up with a vengeance.

Here’s a look at what’s happened so far in the foreclosure world and what you can expect in coming months.

The Sad Saga of U.S. Home Foreclosures

While many economic indicators suggest that we’re finally tugging ourselves out of the recession that’s gripped us for years now, the state of the housing market suggests otherwise. Here’s a look at why.

• Robo-signing foreclosure scandal: In the last few months of 2010, a foreclosure scandal hit: it seems that, at many banks, the practice of “robo-signing” had become common for foreclosure paperwork. Lawyers quest

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Tags: Balloon Month, Month