Consumer Mortgage News Made Simple
Image via Wikipedia The Federal Trade Commission (FTC) issued a ban on eight companies marketing loan modification services. The FTC’s statement alleges that “the marketers charged up-front fees and falsely claimed they could get their mortgage loans modified or prevent foreclosure on their homes.” The following defendants and settlements were named in the FTC’s recent press release: Federal Loan Modification Law Center - Steven Oscherowitz and other associates settled with the … [Read more...]
Image via Wikipedia Marketers peddling a “Rapid Debt Reduction” program and false promises to reduce consumers’ credit card interest rates have been fined $1.5 million by the FTC. Under court order the principals have agreed to pay the fine in restitution for their debt relief scheme, which claimed interest rate reductions in exchange for an up-front fee of up to $899. The fines will go to refund defrauded consumers. This FTC action is just one of several filed as part of a collaboration … [Read more...]
The Federal Trade Commission has issued warnings to 18 websites offering "free" credit reports. The FTC expects each to more clearly disclose the consumer's right to a free annual credit report under federal law. According to a press release these warnings were in response to the recent FTC's amended Free Credit Reports Rule (effective April 2, 2010). This amendment requires that credit report providers more clearly distinguish between "free" credit reports that require the buying of additional … [Read more...]
Successful loan modifications are providing debt relief for a few lucky homeowners. However, many are discovering that there is more bad news lurking--a significant ding to their credit. In some cases consumers are seeing as much as 100 points shaved from their credit scores. U.S. Rep. Jackie Spier (D-CA) doesn’t think that’s fair. Spier’s H.R. 5743, the Protecting Homeowners’ Credit History Act would protect consumers’ credit scores from negative reporting while paying their modified … [Read more...]
Image via Wikipedia Have you ever applied for a credit card, car loan, or mortgage? If so you have probably heard the lender talk about your credit score. But, do you know what your credit score is or more importantly how to improve it? Credit scores are the centerpiece to any decision to lend a consumer money. However, increasingly that all important number is being used to determine whether you can rent an apartment, get a cell phone, or even have affordable insurance. If a single number … [Read more...]
Image by Casey Serin via Flickr According to a report just released by FICO, Inc., US consumers are sinking to new credit lows. The credit score bell curve, traditionally skewed above 700, has now drastically shifted below 599. In data released on MyFICO.com, figure show that over 25% of consumer (an estimated 43.4 million people) now have credit scores below 599. The explanation seems to be the millions of people losing jobs, underemployed, or hit with crisis that have had to rely on debt … [Read more...]
Stop Reading and Go Vote! If you haven't already voted yet: take one last peek at what your vote will mean to your mortgage market, shut the lid on your laptop, head to the polls, do your civic duty, and then get your free coffee! Consumer Credit Crunch Banks are going to turn us into a savings economy after all. Tightening would have been a lot more valuable done over time rather than an overnight choke hold. However, a good short-term belt tightening never hurt anyone in the long-run. It also … [Read more...]