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