VA unveils new program to buy defaulted mortgages

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Flávia Furlan Nunes | Housingwire
In response to the V.A. Wednesday’s announcement, the National Consumer Law Center (NCLC) and the Center for Responsible Lending (CRL) asked the V.A. to extend the foreclosure pause, which is set to expire on May 31, until the VASP program is widely available.

More US student loan relief on the way. What it means.

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Herbert L. White | The Charlotte Post
“We commend the Biden-Harris administration for its continued efforts to make student loan repayment fairer for consumers,” said Nadine Chabrier, senior policy and litigation counsel at the Durham-based Center for Responsible Lending. “Congress never required the Department of Education to capitalize most interest on these loans; so, it’s well past time to make things right for the millions of affected borrowers.”

Biden proposes expanding free community college across the U.S.

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Annie Nova | CNBC
“We fully support the administration’s commitment to increasing the Pell Grant,” said Jaylon Herbin, director of federal campaigns at the Center for Responsible Lending. “This move signifies a crucial step toward enhancing access to education for all borrowers, but especially borrowers of color in underserved communities,” Herbin said.

Biden's speech elicits mixed reaction from housing industry

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Brad Finkelstein | American Banker
The Center for Responsible Lending noted that the down payment assistance the White House wants mirrors a prior proposal it made, as well as the Downpayment Towards Equity Act that passed the House of Representatives in 2021. "Targeted first-generation down payment assistance would open doors of opportunity for families who have not benefited from intergenerational transfer of wealth," said Mike Calhoun, CRL president, in a press release. "This policy would expand the economic security that homeownership brings, and it would help narrow the racial homeownership and wealth gaps."

Education Department Refunds Overpaid Student Loans in Forgiveness Push

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Tracy Park | Business Times
This effort addresses the challenges faced by many borrowers who, due to complex regulations and mismanagement by loan servicers, have continued making payments beyond the 20 or 25-year forgiveness threshold set by income-driven repayment plans. Nadine Chabrier from the Center for Responsible Lending highlights that financial disincentives for loan servicers have contributed to a lack of transparency about these forgiveness opportunities, leaving borrowers in the dark.

Biden’s Plan Could Help You Qualify for Homeownership — Here’s How

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Adam Palasciano | Yahoo Finance
According to a recent report from the Center For Responsible Lending, borrowers making payments on their student debt who enroll in SAVE could see their ratio fall somewhere between 1.5% to 3.6%. The SAVE plan increases the income exempted from your payment calculation to 225% of the poverty line, from 150%. This means that for single people, approximately the first $33,000 of your income won’t be factored into your monthly obligation. This is up from around $23,000 on other income-driven repayment plans. The good news? Even more of your income is exempt as your family size increases.

After 35 years, he got $119,500 in student debt forgiven. Then the government refunded him $56,801

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Annie Nova | CNBC
Under the U.S. Department of Education’s income-driven repayment plans, student loan borrowers are entitled to get any of their remaining debt forgiven after 20 years or 25 years. Yet many have not seen that promised relief. “This is due, in part, to strong financial disincentives for student loan servicers to inform consumers about the program and their ability to qualify for it,” said Nadine Chabrier, a senior policy and litigation counsel at the Center for Responsible Lending.