"First American Real Estate Solutions estimates that about one in eight households who took out adjustable rate mortgages in 2004 and 2005 will default on their loans because of the higher interest rate burden."
staten

Michael E. Staten
spotlight archive

afsaonline

MAY 2006   

Bankruptcy Counseling



   

One of the key features of the bankruptcy reform legislation enacted in 2005 was a new requirement that debtors undergo two rounds of credit counseling prior to a discharge of their debts in either Chapter 7 or Chapter 13 bankruptcy.... A new report from the National Foundation for Credit Counseling (NFCC) describes the experience of that organization's member agencies during the first five months under the new law.


Federal Reserve on the U.S. Economic Outlook
Federal Reserve Board Chairman Ben Bernanke delivered his assessment of the U.S. economy to the Joint Economic Committee of the U.S. Congress at the end of April. The outlook is upbeat.

Personal Bankruptcies Still Far Below Normal Volume
Is it too soon to proclaim that bankruptcy reform in the U.S. had the intended effect of discouraging a significant volume of unnecessary filings? Probably. But, week after week the volume of new petitions filed in courts nationwide remains far below last year's totals.

Mortgage Rate Adjustments Will Impose New Burden
As if higher energy prices weren't enough, millions of households will face sharp increases in their mortgage loan payments in the next 18 months.

Rent-A-Center Enters Payday Loan Market
Hoping to capitalize on its relationships with lower-income borrowers, Rent-A-Center Inc. has announced that it will be expanding into other financial services, beginning with payday loan products.

Bank of America Could Launch a New Card Brand
Bank of America's CEO Kenneth Lewis startled many credit card market observers when he announced in late April that he might be interested in launching a new credit card processing network and brand to compete with Visa, MasterCard, American Express and Discover.

Bankruptcy Counseling
One of the key features of the bankruptcy reform legislation enacted in 2005 was a new requirement that debtors undergo two rounds of credit counseling prior to a discharge of their debts in either Chapter 7 or Chapter 13 bankruptcy.... A new report from the National Foundation for Credit Counseling (NFCC) describes the experience of that organization's member agencies during the first five months under the new law.

Federal Reserve Board Schedules
Home Equity Loan Hearings
The Federal Reserve Board has announced a series of hearings to be held in June and July under the Home Ownership and Equity Protection Act (HOEPA). HOEPA directs the Board to hold public hearings periodically to examine the home equity lending market and the adequacy of the consumer-protection regulation enacted under HOEPA to curb abusive lending practices.

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