YOU ARE HERE: LAT HomeCollectionsLoan Default

Loan Default

February 11, 1985
The technical default on $2.5 billion in loans may be lifted in a few weeks since tentative labor accords have been reached with the carrier's three labor unions, an airline spokesman said. Final agreements must be signed before the firm's 60 lenders, including some overseas financial institutions, will vote to approve such clearance. A Jan.
April 22, 2014 | By Ricardo Lopez
A new report released Tuesday by the Consumer Financial Protection Bureau is warning borrowers of a catch that is pushing private student loans into default even if the loan is in good standing.    The federal consumer agency said that borrowers complain of being blindsided when their student loans automatically default when co-signers -- usually parents or grandparents -- die or fall into bankruptcy. When this happens, lenders demand that the full amount be paid immediately.
February 10, 1989 | From Times wire services
The Federal Deposit Insurance Corp. has charged former White House Budget Director Bert Lance and a Calhoun company with defaulting on loan payments to a now-defunct Tennessee bank. The U.S. District Court suit seeks $1.5 million from Lance and Kris Co. Inc. It alleges that Lance and the company defaulted on payments to the United American Bank of Knoxville for four loans and renewal agreements dating to late 1981. The suit, filed in Rome, was made public Thursday after U.S.
June 16, 2013 | By Chad Terhune
Shares of Corinthian Colleges Inc. fell 23% last week after the Santa Ana for-profit college chain disclosed that the Securities and Exchange Commission had launched an investigation into the company. Corinthian said it received a subpoena this month from the SEC related to student recruitment, degree completion, job placement, loan defaults and compliance with U.S. Education Department rules, among other issues. The company said in a securities filing it intends to cooperate with the SEC investigation.
Q: I defaulted on approximately $5,000 in student loans in early 1982. I tried to make payments after that, but was earning too little money and was never able to get the loan out of default. My credit rating is suffering and I want to clear up this matter. What do I have to do? --C.F.D . A: The U.S. Department of Education is more than happy to welcome you back into the fold, but it will have to be on the government's terms.
April 5, 1989 | WILLIAM J. EATON and SARA FRITZ, Times Staff Writers
New troubles for House Speaker Jim Wright emerged Tuesday as a result of disclosures that he advocated leniency for troubled savings and loan associations at a time when a close friend and benefactor could have benefited from such relief.
To the owner of Eldorado Colleges, his students' loss of federal financial aid was the result of overzealous bureaucrats who unfairly forced the chain of vocational schools to close this week, in the process cutting loose 800 students who were learning skills to land a good job.
When a new Beverly Hills company sought a loan guarantee from the state, its goal seemed laudable: to expand residential care services in poor neighborhoods of Los Angeles County. The company, though, did not meet the state's financial requirements, and one of its facilities had a history of serious health and safety violations. Still, the state's Cal-Mortgage program granted $17 million in loan guarantees to Community Adult Care Centers of America Inc. four years ago.
July 14, 1993 | JOHN O'DELL, TIMES STAFF WRITER; Times staff writer David W. Myers in Los Angeles contributed to this report
News that Southern California's second-largest home builder has defaulted on a $150-million development loan is sending a shiver through an already ailing industry. The decision by Fieldstone Group of Cos. to allow the loan for the 2,300-acre La Costa planned community in northern San Diego County to go into default shows that not even the biggest and most successful builders are immune from cash-flow problems. Late last year, in fact, the giant William Lyon Co.
August 11, 1994 | From Times Staff and Wire Reports
Peoples Telephone Posts Loss, Loan Default: The nation's largest public pay phone company reported a loss of $4.9 million on revenue of $42.6 million for the quarter ended June 30, contrasted with a profit of $1.4 million on revenue of $30.1 million a year ago. Peoples also incurred costs in failed merger talks with IDB Communications Group, which has since agreed to be acquired by LDDS Communications.
November 20, 2012 | By Jim Puzzanghera
WASHINGTON - After nine-straight months of improvement, consumers slipped in October in keeping up with their bills. A closely followed composite index of defaults on mortgages, credit cards and auto loans increased last month after hitting a post-recession low in September. Driven by higher defaults on first mortgages, the consumer credit default index released Tuesday by S&P Dow Jones Indices and credit reporting company Experian increased to a 1.55% rate in October from 1.46% the previous month.
July 25, 2012 | By Carla Rivera and Jamie Goldberg, Los Angeles Times
WASHINGTON - The Obama administration on Tuesday released a version of a financial aid award letter that will allow students to better compare college costs before deciding where to enroll. The so-called shopping sheet is a one-page, standardized form that the administration hopes public and private colleges will adopt so that students can make side-by-side comparisons of estimated annual costs, potential loan payments after graduation, and an institution's graduation and loan default rates.
July 17, 2012 | By Walter Hamilton, Los Angeles Times
Americans are borrowing huge amounts of money from their 401(k) retirement plans — and then having big trouble paying off their debt, according to a new study. Defaults on 401(k) loans have totaled as much as $37 billion a year in recent years, far higher than previously estimated, according to the analysis Monday by two researchers. The default rate hit 17.4% in the 12 months through May. That's down slightly from the 19.8% peak in mid-2010, but up dramatically from 9.7% in mid-2008, before the global financial crisis.
October 14, 2010 | By Walter Hamilton, Los Angeles Times
Shares of for-profit education companies plunged Thursday after industry leader Apollo Group Inc. shocked Wall Street by predicting a sharp drop in enrollment amid growing government pressure in the industry. For-profit colleges have encountered harsh criticism in recent months from regulators and lawmakers, who say the schools admit poorly qualified students who drop out at high rates and rack up enormous government-guaranteed loans that they have trouble paying off, leaving the tab for taxpayers.
March 26, 2010 | By Alejandro Lazo and Jim Puzzanghera
The Obama administration unveiled new measures Friday aimed at getting lenders to reduce the principal balances on problem mortgages and to refinance "underwater" borrowers, who owe more than their homes are worth, into government-sponsored loans. The initiatives are part of an escalating effort to buoy the housing market -- and an acknowledgment that more steps are needed to prevent a fresh wave of foreclosures. One provision will allow many unemployed homeowners to get three to six months of reduced mortgage payments while they look for a job. But the most significant change to the $75-billion program is aimed at helping underwater borrowers.
November 13, 2009 | Dina ElBoghdady, ElBoghdady writes for the Washington Post.
The Federal Housing Administration's cash reserves have shrunk to a level far below what is required by law, and the agency could need taxpayer funding if worst-case scenarios play out, according to an independent audit. The audit examined the reserves the agency must set aside to deal with unexpected losses in its flagship home-buying program, which has played a key role in supporting the housing market. As of Sept. 30, those reserves had an estimated value of $3.6 billion, a sharp drop from $12.9 billion a year earlier, the audit found.
April 20, 1990 | From Times Wire Services
An $82,135 loan default judgment was granted today by a federal judge against center Ralph Sampson of the Sacramento Kings. U.S. District Judge James R. Spencer took the action after Sampson of Harrisonburg, Va., who played college ball at the University of Virginia, did not respond to the case brought against him by Crestar Bank. Sampson, 29, was served in Sacramento last month with a summons in the civil dispute. The application for the default judgment was filed Feb.
May 3, 1996
Deadbeat alumni of Compton Community College could be making it harder for the school's future students to finance their education. The school's federally guaranteed loan program faces new restrictions or even suspension based on 1993 statistics indicating that nearly half of the 34 students scheduled to make payments on their federal loans that year were in arrears.
May 6, 2009 | Times Wire Reports
Sempra Energy, owner of the largest U.S. natural-gas distributor, said first-quarter profit rose 31% on higher utility rates and a surge in earnings from its commodities-trading joint venture. Net income rose to $316 million, or $1.29 a share, from $242 million, or 92 cents, a year earlier, the San Diego-based company said. Sales fell 36% to $2.1 billion. * Marvel Entertainment Inc.
August 30, 2008 | E. Scott Reckard, Times Staff Writer
In a sign of more stress in Southern California's banking industry, Hanmi Financial Corp. said Friday that it would quit paying dividends to shareholders to conserve cash at its operating unit, Hanmi Bank. The Koreatown-based company lost $105.5 million in the second quarter, largely the result of a noncash accounting charge but also a reflection of growing weakness in the bank's loan portfolio. Because of the red ink, the company said, state and federal regulators have imposed restrictions that require suspending the quarterly dividend of 3 cents a share, last paid in July.
Los Angeles Times Articles