The Consumer Finance Protection Bureau said that Chase sold “zombie debts” to third-party debt buyers, which include consumer accounts that were inaccurate, settled, discharged in bankruptcy, not owed, or otherwise not collectible.
The association between debt and depression is particularly strong among unmarried people, people reaching retirement age and those who are less well educated.
Green Tree has agreed to create a home preservation plan for some distressed homeowners and take steps to ensure that it collects the correct amounts from consumers.
Many consumers stopped making payments to the original lenders after having paid hundreds of dollars in fees.
The foreclosure inventory was down 34.1 percent, marking the 36th month of consecutive year-over-year declines.
The credit bureau TransUnion reported Tuesday that the mortgage delinquency rate (the rate of borrowers 60 days or more past due on their home loans) dropped 23.3 percent over the past year, ending the third quarter of 2013 at 4.09 percent.
Sequestration cuts initiated on March 1 of this year have caused substantial shortfalls in funding to renew the Housing Choice Vouchers that more than 2.1 million low-income households use to rent modest private-market housing at an affordable cost.
The foreclosure crisis has softened considerably, although the number of borrowers in the process of possibly losing their homes is still far above the pre-crisis level dating back to the early 2000s. Nonetheless, 51,000 foreclosures were completed in September 2013, a 39 percent year-over-year decline.
SML Corp., better known as Sallie Mae, is targeted by federal agencies for possible violations of consumer protection laws, according to the company’s latest quarterly report. Sallie Mae is the nation’s largest servicer of federally subsidized student loans.
The propensity for fraud in mortgage applications is declining from its peak in 2012, and that’s good news for regulators and consumers who never want to see another housing market collapse.