Items Tagged with 'Debt restructuring'

ARTICLES

  • CFPB suing Freedom Debt Relief for deceiving customers

    Claims nation’s largest debt settlement services provider lies to customers
    Freedom Debt Relief, the nation’s largest debt settlement services provider, built its business on lying to its customers about the company’s ability to negotiate debt settlements, the Consumer Financial Protection Bureau claims. “Freedom took advantage of vulnerable consumers who turned to the company for help getting out of debt,” CFPB Director Richard Cordray said in a statement.
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  • Cram-Downs Will Drive MBS Downgrades, Analysts Say

    (Update 1) Key industry analysts have been raising a red flag in the past few weeks regarding the possible impact of a plan that would allow bankruptcy judges to modify the terms of mortgages during debt restructuring, suggesting that allowing so-called cramdowns to take place will likely lead to further significant write-downs in an already battered secondary mortgage market -- leaving banks with even larger-than-expected holes on their balance sheets.
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  • Citi Throws Weight Behind Cram-Downs

    In a move that clearly caught much of the financial and mortgage markets by surprise late Thursday, Citigroup, Inc. [stock C][/stock] agreed with key legislators on a plan that would allow bankruptcy judges to modify the terms of mortgages during debt restructuring. The move is a surprising break from the financial industry's long-standing and strong stance against allowing so-called mortgage debt cram-downs.
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  • Stimulus Package to Include Cram-Downs: Report

    The latest round of economic stimulus currently being crafted by Senate Democrats is likely to include controversial legislation allowing so-called "cram-downs" of mortgage debt in bankruptcy, according to a Reuters report Monday evening. The proposal, long opposed by key lobbyists in the mortgage industry, would allow judges to reduce mortgage debt on primary residences as part of a bankrupt borrower's debt restructuring plan.
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  • Franklin Credit Enters into Debt Restructuring

    Franklin Credit Management Corporation, primarily a scratch-and-dent mortgage operation, said late Thursday that it had entered into debt restructuring with its primary creditor, The Huntington National Bank. HW reported in November on the woes at Franklin Credit, which at the time said it might not survive.
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