Zero-Balance Reporting of Mortgage Debt Post-Bankruptcy
Author: Ryan M. Holz.; Douglas R. Sargent.; Irina Dashevsky.
Source: Volume 31, Number 02, Winter 2018 , pp.23-26(4)
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Abstract:
The zero-balance approach to reporting post-bankruptcy discharged loans is, with some dissent, the prevailing view required of furnishers by the courts. The authors discuss the majority and minority views, and point out that zero-balance reporting may create inaccuracy when debtors continue to make mortgage payments post-discharge in order to avoid foreclosure. They suggest that the CFPB and the courts reconsider the wholesale zero-balance approach. *This article available for download for journal subscribers only; no pay-per-article option is available.Keywords: Fair Credit Reporting Act (FCRA) litigation; bankruptcy discharge; Riekki v. Bayview Loan Financial Servicing; post-discharge loan payments; zero balance
Affiliations:
1: Locke Lord LLP; 2: Locke Lord LLP; 3: Locke Lord LLP.