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Since mortgages are the most secured of any loan type (a lender can foreclose on a house if the loan defaults), collection agencies generally don’t get much mortgage collection work. But there is one large exception: deficiency balances. If a lender approves the sale of a house for less than what is owed by the borrower, the difference is a deficiency balance. In the ongoing morass of the housing market, short sales are commonplace. Lenders will typically forgive deficiency balances. If they do not, that amount enters the ARM process and can find its way to debt collectors.
For the second straight quarter, the percentage of Americans with at least one account in the third party debt collection system hit an all-time high in the first three months of 2013. Close to 15 percent of consumers have an account being worked by debt collectors.
At a scheduled field hearing in Des Moines, Iowa Thursday, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray announced the expansion of its Consumer Complaint Database and the release to the public of roughly all complaint data it has collected through its Consumer Response complaint system.
Javlin Capital LLC has entered into a financing and investing relationship with New Jersey-based First Equity Capital to provide First Equity with an integrated facility of debt and equity to finance its purchases of non-performing residential mortgages (“NPLs”) and bank-owned homes (“real estate owned,” “REO”) in the State of New Jersey.
The percentage of Americans with at least one account in third party collections rose to an all-time high in the fourth quarter of 2012, according to the Federal Reserve Bank of New York. The average account balance of those in collection decreased.
In its Quarterly Report on Household Debt and Credit for the fourth quarter of 2012, the FRBNY noted that 14.6 percent of American consumers had an account in the third party debt collection system, up from 14 percent in the third quarter.
Green Tree Credit Solutions and its affiliate company, Landmark Asset Receivables Management, have reported a significant improvement in collection recovery rates as a result of deploying the debt collection solution from Latitude Software
The U.S. Court of Appeals for the Sixth Circuit Monday handed down an opinion that defined mortgage foreclosure actions as “debt collection” under the Fair Debt Collection Practices Act (FDCPA), reversing a lower court decision.
The ruling places FDCPA compliance on another set of professionals for the time being.
TransUnion released its annual forecasts today on two primary consumer credit variables – mortgage and credit card delinquency rates.
The Federal Reserve recently released its Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks reports for the third quarter of 2012. Consumer credit card delinquency rates set another record for all-time lows while consumer mortgage arrears increased in the quarter to near-record highs.
The Federal Trade Commission and the Consumer Financial Protection Bureau announced Monday they have concluded a coordinated “sweep” of mortgage product advertising which resulted in issuing 32 warning letters and commencing 19 enforcement investigations.
The national mortgage delinquency rate (the rate of borrowers 60 or more days past due) declined slightly for the third consecutive quarter,dropping from 5.49% in Q2 2012 to 5.41% in Q3 2012