Though it still needs to go several rounds through Congress, the president has submitted his budget. One line-item has many states taking a second look at their budgets. States that took out federal loans to pay for unemployment may be able to defer interest for another few years. Unemployment insurance loans In order to pay
The Making Home Affordable Modification Program is a federal government program started in early 2009 as a response to the foreclosure crisis. It is intended to support mortgage modification, mortgage refinancing and other affordable home options for homeowners stuck in mortgages they cannot pay. This program, however, has been running into consistent problems with lenders.
Raising credit card interest rates on customers without telling them has gotten Capital One in trouble, again. A class action lawsuit accusing Capital One of violating the Truth in Lending Act by raising credit card interest rates without warning was dismissed by a federal judge earlier. But the 9th Circuit reinstated the Capital one class
Potential students should be cautious if considering going to a for-profit, private college. Though college is usually worth taking out some personal loans to fund, the for-profit schools have higher default rates and are often at odds with state authorities. Some schools are worth it, but people should do their homework before attending. The Donald
A settlement is soon to be announced regarding the robosigning foreclosure controversy. Some of the nation’s largest mortgage lenders rubber-stamped foreclosure documents without looking at them and may have foreclosed on some people who didn’t deserve it. A legal probe into foreclosure practices has reportedly reached a settlement with those lenders. JPMorgan exec discloses deal
In Minnesota, Gov. Tim Pawlenty has ended a loan program intended to increase minority home ownership. The loan program only provided three mortgages between being set up by the Minnesota state housing agency and getting shut down by the governor. Pawlenty shut down the program upon discovering that it offered Sharia-law-compliant mortgages. Minority mortgages in
Americans now owe more for their student loans than their credit card debt. While people are paying down their credit card balances in the aftermath of the financial crisis, college costs continue to rise. Some analysts say less consumer protection for student loans than other types of borrowing is a reason for the trend. Others
This year, H&R Block will not be offering any short term loans against tax refunds. Refund Anticipation Loans, or RALs, are loans lent by a preparer against a potential refund, less a fee. The banking partner of the company was forced out of offering the loans by regulatory bodies. No more short term loans from
It is getting harder for students to make payments on the loans they borrowed to pay for an education. The default rate on students’ personal loans is rising nationwide, and lenders, including the federal government, are not forgiving despite a tough economic climate. Loan payments not as expensive as having to lawyer up The U.S.
Recent statistics from the car-lending industry are showing that it is easier to get car loans with bad credit. While lending is still slow for borrowers at every credit tier, it is improving. Lenders are also exploring alternative lending options that are helping expand available credit. Drop in lending installment loans During 2008, the amount
Tax preparer Jackson Hewitt recently filed for Chapter 11 protection for a short bankruptcy. Hewitt and other tax preparation firms were dealt a heavy blow when changing regulations made it impossible for tax firms to secure funding for tax refund loans. Refund anticipation loans are often vilified alongside payday loans as preying on the poor.
An epidemic of attempted mortgage loan fraud is sweeping the country as the credit crunch lingers on. Consumers should be aware of what constitutes loan fraud to avoid committing it. Penalties for mortgage loan fraud include jail time and hefty fines. Attempted mortgage loan fraud jumps 57 percent Attempted loan fraud skyrocketed to nearly 60
In 2008, a small person-to-person lending company called Kiva launched. The person-to-person lending company has now added green loans and student loans to the financing portfolio. With these new products, Kiva hopes to hit $1 billion in microloans lent by 2015. The basics of Kiva Kiva was the first major online microloan site. The nonprofit
In the last few years, there has been a growing number of debt settlement relief companies offering to get people out debt. Some of these companies are on the level, but many are not and the government put rules in place to prevent dishonest practices. Many of these companies have not gotten the memo. Debt
The Internal Revenue Service has announced that it will no longer provide certain information to tax preparers issuing refund anticipation loans. More than once has the product been decried. Opponents have contended that they can be worse than payday loans. An RAL, or Refund Anticipation Loan, is a loan product that depends on the tax
The latest chapter in the Bernie Madoff financial scandal involves one of the United State’s largest banking and investment companies, reports PR Newswire. It has been announced via press release that Irving Picard, the trustee for liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), is filing a complaint in U.S. Bankruptcy Court for the
A major decision has been made in one of the first major cases addressing loan servicing. In Reno, Nev., loan servicer Compass/Silar has been found liable for $5.1 million in damages. This lawsuit was brought by mortgage investors rather than mortgage holders. The business of loan servicing Loan servicing is a business that often hides