Borrowers are Being Illegally Barred from Making Income Based Payments on Student Loans

Unfortunately, in this day and age, student loans are a necessary evil that nearly every college student has to indulge in – and now the process of repaying those loans has gotten even more complicated.
The Consumer Financial Protection Bureau(CFPB) has determined that many student loan ‘servicers’ are illegally denying borrowers the right to adjust their repayments to match their income, even though they qualify for the special repayment programs.
One of the reasons servicers do not want borrowers to use the special income driven repayment programs, is that after 20 years any balance can be ‘forgiven”.
However, CFPB is demanding that Government appointed servicers live up to their original agreements and allow qualifying borrowers access to income driven repayment plans.
For more information, see complete article here http://tinyurl.com/j3wsz7g

HSBC Settles Mortgage Abuse Claims with US DOJ and States

A recent press release issued by the United States Department of Justice reports that the Justice Department and other federal agencies along with almost every State Attorney General have reached a settlement resolving allegations that HSBC committed mortgage loan origination, servicing and foreclosure abuses. The settlement appears to total $470 million of which $370 million is scheduled to be available for consumer relief including modifications and other forms of mortgage relief.

The implementation of the settlement will be overseen by Joseph A Smith, Jr., who was the monitor for the $25 billion National Mortgage Settlement which was reached in February 2012. It is estimated that approximately 345 New Jersey consumers may be eligible for relief under this program if they either lost their homes or where the victim of abuse by HSBC from January 1, 2008 to December 31, 2012.

Unfortunately, it appears that the selection of current or former HSBC mortgage holders will receive assistance under this program will be done by HSBC. HSBC will also determine what relief to offer to eligible consumers.

We are urging anyone who believes that they might benefit from this settlement to contact us for assistance in filing a mortgage modification application. If you would like to review the Department of Justice press release regarding this issue click on the following link:US DOJ Press Release

Mortgage Fraudster Sent to Jail

A recent item in Newsday reports that Aaron Wider, a mortgage broker who lured people into mortgages which they could not pay, has been sentenced to 30 years in prison. It is about time that those who perpetrated these frauds on consumers receive the punishment which they deserve. We still wait anxiously to see if any of the executives of the nations biggest banks, who orchestrated the massive collapse of the economy are brought to justice. Unfortunately, his conviction will do little to help those who have already lost their homes or who are still in foreclosure. If you are still looking to obtain a mortgage modification, call us to discuss your options. For more information click on the following link — Newsday