Credit Agencies Sued Over Bankrupt Account Reporting
RICHMOND, Va. -- A group of consumers in Virginia who have previously filed bankruptcy are suing the credit repositories because their former debts don't show as discharged on their credit reports and instead show as outstanding and delinquent. In other credit-related litigation, one borrower claims that after two of the credit agencies settled a lawsuit she filed against them, she began receiving calls from creditors trying to collect someone else's debt. So she is back in court.

For three years, Sharon Ross has battled with credit-reporting agencies.

Last year, she sued two of the big three agencies for mixing her credit history with that of a stranger in Chicago -- a place where she neither had worked nor lived.
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Fannie Clarifies Credit Reports Required Before Closing
Fannie Mae said lenders misinterpreted a previous letter about the need to pull a credit report just before closing and has clarified its stance.

Chapter 13 Bankruptcies Jump
Bankruptcy filings by consumers increased 9 percent last month. The rise was even more pronounced for Chapter 13 bankruptcies.

The Bankruptcy Litigator
Among issues recently litigated in bankruptcy cases were arbitration and bankruptcy fees. A recent report addressed privacy issues and attorneys' fees arising from the filing of contracts with personal information.

Bankruptcy Courts Less Busy
U.S. consumers filed 7 percent fewer bankruptcies last month. It was the third consecutive month that filings declined. But the forecast for the rest of the year is for filings to turn higher.

Mortgage Profits, Quality Jump
Last year, mortgage bankers saw an increase in loan production, a bigger share of their applications close and more earnings per loan. In addition, average credit scores rose and average loan-to-values fell, while the application conversion rate improved.

Walkaways Decline
A new report suggests the number of strategic defaults might be well past the peak. One finding was that borrowers with high credit scores are more likely to walk away from a negative-equity property.

Credit Score Crisis to Linger
While over-extended borrowers might find immediate relief from loan modifications, foreclosure alternatives or even foreclosures -- they are likely to be haunted by lower credit scores for years to come. Some lenders, however, are looking beyond credit history -- a move that could even impact borrowers who have maintained their payments. Panelists at a credit-risk conference discussed the implications and other alternatives.

Fannie Gets Tougher on Prior Foreclosures
Borrowers who walk away from their upside-down mortgages even though they had the ability to pay will have to wait longer to get a loan under new guidelines from Fannie Mae.

2nd Month for Bankruptcy Decline
Consumer bankruptcy filings fell for the second consecutive month.