WASHINGTON UPDATE of Columbia Circuit( D. C. Circuit) for an en banc review of PHH v. CFPB. The petition, which was expected, argues that this case represents“ what may be the most important separation-ofpowers case in a generation.” You can read the petition here.
More from the CFPB … the CFPB has taken action against B & B Pawnbrokers, Inc. for deceiving consumers about the actual annual cost of its loans. In a lawsuit filed in federal court, the CFPB alleged that B & B Pawnbrokers broke the law by misstating the charges associated with pawn loans. The CFPB’ s lawsuit seeks to end B & B Pawnbrokers’ illegal practices, get restitution for the consumers it harmed, and impose penalties. You can read the lawsuit here.
In good news for consumers, the Internal Revenue Service( IRS) aims to include as many homeowners as possible in a taxable-income exclusion set to expire at the end of the year. According to Notice 2016-72, the IRS will accept debt reduction modifications as long as the borrower receives a trial offer by the sunset of the Home Affordable Modification Program, set for Dec. 30, 2016. The program was created to encourage banks to lower monthly mortgage payments to help homeowners stave off foreclosure after the subprime mortgage crisis.“ This is trying to capture as many people as possible in the folks that can benefit from that tax assistance,” Sarah Bolling Mancini, of counsel at the National Consumer Law Center Inc., told Bloomberg BNA Nov. 28.
The IRS guidance focuses on the programs that allow homeowners to reduce the principal balance on their loans, not programs that just reduce interest rates or stretch repayment terms, Mancini said. Homeowners must receive a trial period plan from their bank before Jan. 1, 2017, but don’ t need to complete the plan or enter into a permanent version before the deadline, the IRS said. Typically, a bank will send out a letter saying a homeowner is approved for a trial plan, and the homeowner must then make a trial payment for the next three months before a permanent version will be offered, Mancini said.
FROM THE INTEREST GROUPS A group of 10 consumer advocacy organizations has also filed an amicus brief in support of the Consumer Financial Protection Bureau’ s( CFPB) petition filed with the D. C. Circuit seeking a rehearing of its decision in CFPB v PHH Corporation. Read the brief here.
OTHER For easy access, here is a link to the CFPB Ombudsman’ s webpage. There you will find their 2016 Annual Report, which you may find informational as well as a useful as a resource.
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National Association of Consumer Bankruptcy Attorneys Winter 2016 CONSUMER BANKRUPTCY JOURNAL 19