When Vets Fall Behind on Mortgage Payments …

first_img The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago When Vets Fall Behind on Mortgage Payments … Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Radhika Ojha Previous: Accelerating Blighted Property Foreclosures Next: The Week Ahead: Will the Fed Raise Rates? Tagged with: CFPB Loan Loan Modifications Loss Mitigation mortgage payments Processing Servicemembers Veterans CFPB Loan Loan Modifications Loss Mitigation mortgage payments Processing Servicemembers Veterans 2019-01-25 Radhika Ojha The Week Ahead: Nearing the Forbearance Exit 2 days ago Issues relating to loan modifications or collections were among the most common type of mortgage-related complaints by servicemembers, according to an annual report from the Office of Servicemember Affairs and the Consumer Financial Protection Bureau (CFPB). The report noted that around 40 percent of active duty servicemembers have a mortgage and over 700,000 veterans currently have a VA home loan mortgage.The report also indicated that veterans were 40 percent more likely to be underwater on their homes than non-veterans.Looking at the type of complaints received by servicemembers, the CFPB report said that the highest number of complaints (43 percent) related to troubles during the mortgage process while 31 percent servicemember complains were related to issues when they were struggling to pay their mortgage. When it came to the payment process, someservicemembers stated that “when they called their servicers, they could not get their single point of contact on the telephone.”Complaints suggest that payment application and the management of escrow accounts continue to be a challenge for some servicemembers the report indicated. Additionally, vets also described problems with their automatic payments when escrow shortages and surpluses caused a change in their monthly mortgage payment.When mortgages were transferred to a new company, they tended to cause confusion among servicemembers especially when they received notice about such transfers, the report indicated. Upon the transfer, some servicemembers described having “difficulty reconciling account balances or obtaining information related to their loan terms.They also described a range of challenges while modifying their mortgages, which included problems like servicers requesting the same documentation multiple times throughout the loss mitigation process as well as offering terms that were unaffordable. “In particular, servicemembers continued to experience trouble with effective loss mitigation options when receiving Permanent Change of Station orders,” the report noted.Despite these problems, the report noted that in comparison to non-servicemembers, veterans experienced these problems less frequently than their civilian counterparts.Click here to read the full report. Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. Related Articles January 25, 2019 2,611 Views center_img Home / Daily Dose / When Vets Fall Behind on Mortgage Payments … Subscribe Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Loss Mitigation, News  Print This Post The Best Markets For Residential Property Investors 2 days ago Share Save Servicers Navigate the Post-Pandemic World 2 days agolast_img read more

Go easy on homeowners as repossessions re-start looms, regulator warns lenders

first_imgLenders have been urged to treat the 1.8 million homeowners who have taken out Covid mortgage holidays fairly as the ban on home repossessions looms at the end of this month.Nisha Arora, the Director of Consumer and Retail Policy at the Financial Conduct Authority (FCA), told an industry conference yesterday that a majority of those who had signed up for these deferrals had been able to meet the new payment plans, but that a significant number needed more support.The FCA’s guidance to lenders has been crucial in shoring up the housing market during the crisis, during which it has changed its advice on dealing with struggling mortgage holders three times.This has helped hundreds of thousands of home owners avoid repossession.RepossessionsArora urged lenders to show those still struggling to pay their mortgage to show flexibility in the way they deal with each case, recognise vulnerable customers, and that repossessions should be a last resort.But she also revealed that those who have taken up a mortgage holiday should expect their credit profiles to be adversely affected “to ensure that lenders have an accurate picture of consumers’ financial circumstances and reduce the risk of unaffordable lending,” she said.“We have set out that once firms have agreed a repayment arrangement with a customer, they should waive or reduce interest, fees and charges to the extent necessary to prevent the balance from escalating.“This will help to avoid the debt becoming unmanageable for the customer and make it easier for them to get back on track.”Read more about repossessions.Nisha Arora home repossessions FCA Financial Conduct Authority October 14, 2020Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021 Home » News » Go easy on homeowners as repossessions re-start looms, regulator warns lenders previous nextRegulation & LawGo easy on homeowners as repossessions re-start looms, regulator warns lendersBut FCA policy chief also warns those on mortgage holidays that they will see their credit profiles adversely affected in the future.Nigel Lewis14th October 20200961 Viewslast_img read more