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

Source
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

Source
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

Source
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

Source
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.

NAR Hosts Policy Forum to Address Challenges Facing Home Buyers

Source
Tori Syrek
The second panel on solutions to assist first-time home buyers was moderated by NAR Vice President of Policy Advocacy Bryan Greene, with Katrina Jones, Fannie Mae's vice president of equity and impact; Michael Calhoun, Center for Responsible Lending; George Fatheree, "Bruce's Beach" attorney and ORO Impact founder; and David Berenbaum, deputy assistant secretary for housing counseling at the Department of Housing and Urban Development.

New student loan repayment plan could make it easier for borrowers to become homeowners

Source
Annie Nova | CNBC
Your debt-to-income ratio, which is usually calculated by dividing all your monthly debts by your monthly income, is a key factor in mortgage underwriting, said Christelle Bamona, a senior researcher at the Center for Responsible Lending. “Those eligible for SAVE will experience reduced payments, which will in turn lower their debt-to-income ratio,” Bamona said. Most borrowers should qualify for the SAVE plan as long as their loan is in good standing.