Advertisement
YOU ARE HERE: LAT HomeCollectionsLoan Defaults
IN THE NEWS

Loan Defaults

FEATURED ARTICLES
BUSINESS
January 29, 2008 | From Times Wire Services
Defaults on U.S. sub-prime mortgages continued their relentless climb in December as some borrowers faced rising payments on adjustable loans, according to Wachovia Corp. A team of analysts at Wachovia said 28.1% of loan balances backing 20 sub-prime bonds created in the first half of 2006 were in default, up 2.43 percentage points from the previous month. That increase compares with a jump of 2.25 percentage points in November. "It is increasingly difficult to find new synonyms for the word 'increase' to describe the direction of nonperforming loans," the analysts wrote in a report dated Friday.
ARTICLES BY DATE
BUSINESS
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.
Advertisement
BUSINESS
May 2, 2002 | Bloomberg News
Conseco Inc. posted its eighth loss in the last 10 quarters on loan defaults at its finance unit and $136.8 million of one-time expenses, including restructuring costs and investment write-downs and losses. The insurance and finance firm's loss was $96.9 million, or 28 cents a share, contrasted with net income of $80.2 million, or 23 cents, a year earlier. Excluding one-time items and investment losses, profit for the Carmel, Ind., firm was 12 cents a share, 2 cents below estimates.
NEWS
March 13, 2014 | By Christi Parsons
The Obama administration is preparing to crack down on some for-profit colleges, requiring them to do a better job of preparing students for work or risk losing access to federal student aid. Newly proposed regulations expected from the Education Department on Friday are designed to stop the flow of federal funds to poor-performing colleges. Students at most for-profit colleges rely heavily on federal loans and grants, and few programs could survive if the flow of federal money were ended.
NEWS
December 12, 1987 | Associated Press
A federal education official, defending a crackdown on student loan defaults, said Friday that some profit-making business schools recruit barely literate students out of unemployment lines. That charge at a Senate hearing by Bruce Carnes, deputy undersecretary of education, drew an angry retort from Sen. Edward M. Kennedy (D-Mass.), who accused the Reagan Administration of aiming its budget ax at "the most vulnerable young people in our society."
BUSINESS
February 16, 2008 | From the Associated Press
Countrywide Financial Corp. said Friday that home loan delinquencies and foreclosures rose in January as more borrowers struggled to make their mortgage payments. The nation's largest mortgage lender and servicer said loan delinquencies increased to 7.47% last month from 7.2% in December and 4.32% in January 2007. Loan servicers collect mortgage payments and distribute them to the owners of the mortgages. Calabasas-based Countrywide services mortgages totaling about $1.48 trillion.
BUSINESS
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.
NEWS
September 2, 1994 | From Associated Press
Defaults on student loans are declining as indebted graduates scramble to "do what's right" and the government uses new tools to dig into their wages and tax refunds in case they do not. Taxpayers are expected to spend $2 billion this year paying off uncollected student loans, down from a peak of $3.6 billion in 1991, Education Secretary Richard W. Riley said Thursday. "After years of rising defaults, it's going the other way," he said.
BUSINESS
December 15, 1993 | DEBORA VRANA
Bank of America has sued to foreclose on the Radisson Plaza Hotel in Irvine, charging that its owners have defaulted on a $19-million loan. In documents filed Monday in Orange County Superior Court, the bank said that GMY Investment Co., L.P., a limited partnership that owns the hotel, stopped making principal and interest payments in January--pushing the outstanding balance, including late fees, to $20.7 million. A default notice was filed with the court in November, court papers show.
BUSINESS
August 18, 1989 | KATHRYN HARRIS, Times Staff Writer
Cineplex Odeon Corp., the Canadian movie theater chain that has been placed on the auction block by its two largest shareholder groups, said it could find itself in default on a $39-million bank loan and face accelerated payment of all of its long-term debt if its two top officers cease to be actively involved in the company's management. As of June 30, the company's long-term debt still exceeded $552 million, despite the recent sale of some major assets.
BUSINESS
December 14, 2013 | By E. Scott Reckard
Daniel A. Bailey Jr. isn't your average homeowner. He hasn't paid his mortgage in more than five years, and has no plans to start now. His stance stems from a bizarre incident that thrust Bailey into the news in 2008, when he suddenly became a public relations liability for embattled home lender Countrywide Financial of Calabasas. Bailey had blanketed Countrywide with emails begging for a mortgage modification. The reply came from none other than Angelo Mozilo, Countrywide's chief executive, who accidentally hit "reply" instead of "forward" on a note meant for colleagues.
BUSINESS
October 16, 2012 | By Jim Puzzanghera
WASHINGTON -- Consumers did a better job making on-time payments for mortgages and credit cards last month than at any point since the end of the Great Recession. A leading index of defaults on consumer loans fell in September for the ninth straight month, hitting its lowest level since 2009. Defaults in four of the five loan categories tracked by the S&P Dow Jones Indices and credit reporting company Experian also dropped to their lowest level 2009, the companies said Tuesday.
BUSINESS
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.
BUSINESS
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.
BUSINESS
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.
BUSINESS
March 17, 2010 | By Alana Semuels
Wynn Bloch has always dutifully paid her bills and socked away money for retirement. But in December she defaulted on the mortgage on her Palm Desert home, even though she could afford the payments. Bloch paid $385,000 for the two-bedroom in 2006, when prices were still surging. Comparable homes are now selling in the low-$200,000s. At 66, the retired psychologist doubted she'd see her investment rebound in her lifetime. Plus, she said she was duped into an expensive loan. The way she sees it, big banks that helped fuel the mess all got bailouts while small fry like her are left holding the bag. No more.
CALIFORNIA | LOCAL
March 3, 1994 | IRENE WIELAWSKI, TIMES STAFF WRITER
Motivated by what he termed the "Triad hospital loan disaster," Assemblyman Burt Margolin (D-Los Angeles) has introduced legislation that would bar state employees and appointees from representing clients before their agencies. Margolin, chairman of the Assembly Health Committee, introduced the bill following a committee hearing last week on the process by which Triad Healthcare Inc.
NEWS
November 5, 1987 | LEE MAY, Times Staff Writer
The Education Department, trying to control the soaring number of defaults on student loans, threatened sanctions Wednesday against institutions with high default rates. Any college, university or other post-secondary school that has a default rate exceeding 20% in the Guaranteed Student Loan Program by 1990 could be expelled from that program and all other federal student aid programs under the new rules. The announcement by Education Secretary William J.
BUSINESS
January 13, 2010 | By E. Scott Reckard
Government officials have subpoenaed documents from 15 lenders whose Federal Housing Administration-backed loans have high default rates, including a failed Missouri bank that was owned by an Orange County financial firm. Many of the FHA-backed loans issued by the lenders went bad almost immediately, said Kenneth M. Donohue, inspector general for the Department of Housing and Urban Development, which includes the FHA. At a news conference Tuesday, he called the action a review that was not yet an investigation.
BUSINESS
January 8, 2010 | By E. Scott Reckard
Delinquencies on home equity loans and lines of credit jumped to record levels in the third quarter, a banking trade group said Thursday. Home equity loan delinquencies rose to a record 4.3% of such accounts from 4.01% in the second quarter, the American Bankers Assn. reported. Delinquencies on home equity lines of credit also hit a record, climbing to 2.12% from 1.92%. The troubles with housing debt contrasted with an improvement seen with other consumer loans, the bankers group said.
Los Angeles Times Articles
|