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In the Wilson ruling, she cites other problematic cases she has overseen where banks servicing borrowers' loans used Lender Processing systems improperly.
As a quid pro quo for freeing up capital via Fannie and Freddie, policy makers and regulators must pressure lenders to do more to restructure needy borrowers' loans.
The program had several false starts, and its loan consolidation operation even suffered a temporary shutdown -- during which time private banks stepped in to assume borrowers' loans.
It has invested heavily in its website, through which it offers borrowers loans of up to £1,000, delivered to their bank accounts in less than 15 minutes.
But we all remember how that movie ended: Just as many of these borrowers' loans were about to reset to a much higher rate, the housing market crashed and many people couldn't refinance into another loan with a more manageable monthly payment.
"Since there has been so little response from the federal regulators in terms of addressing mortgage lending abuses, including adding post-petition bankruptcy fees to borrowers' loans, it is refreshing and gratifying to see that the U.S. Trustee is taking an interest in this," Mr. Brennan said.
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Banks initially fought any requirement to reduce borrowers' loan size, but the state attorneys general insisted that debt reduction be the linchpin of the plan.
Payment protection insurance (PPI) is supposed to cover borrowers' loan repayments if they fall ill, die, or lose their jobs.
PPI is supposed to cover borrowers' loan repayments if they fall ill, die, or lose their jobs.
The connections among mortgage borrowers, loan originators, mortgage purchasers and structured securities packagers are unlikely to be as robust as they were.
The money would reduce the borrowers' loan balances, which placated the CFPB.
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