Summer 2012 - Consumer Credit Counseling Service of Rochester

CCCS of Rochester/RethinkingDebt Headquarters: 1000 University Ave, Rochester, NY 14607
NYS Mortgage Settlement
Inside this issue:
NYS Mortgage Settlement
1
Student Loan Help
2
Back-To-School
2
Financial Education
3
Horizons at Harley
4
Save, Save, Save
4
Legal Help
5
Contact Us
SUMMER 2012
6
By: Lisa Hochlander, Director of Counseling
In New York State, there is an average of 1 in 10 mortgages at risk of foreclosure. Earlier this year, New York, along with 48 other states and the federal government, reached a landmark $25 billion agreement to reform the abusive servicing and
foreclosure practices of the nation's five largest mortgage servicing banks. The banks
involved with this settlement are Ally/GMAC, Bank of America, Citi, JPMorgan Chase
and Wells Fargo.
This settlement is the first of many steps that will start providing assistance to struggling
homeowners, as well as to some who have already been the victims of wrongful foreclosure.
The settlement will provide immediate relief to homeowners across the state who are
struggling to keep their homes. According to U.S. Department of Housing and Urban
Development (HUD) estimates, New York is set to receive an estimated $548 million in
the form of principal reductions, refinancing and direct payments to homeowners and
former homeowners.
This agreement holds the banks accountable for their wrongdoing on robo-signing and
mortgage servicing. President Obama recently announced the formation of a Residential
Mortgage-Backed Securities Working Group to continue investigating the foreclosure
crisis. That working group is co-chaired by Attorney General Schneiderman, along with
officials from the United States Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) Director of Enforcement Robert Khuzami, and includes the
IRS, the Consumer Financial Protection Bureau and other government entities.
For more information about this settlement, visit the NYS Attorney General website at:
www.ag.ny.gov .*Information and content of this article received from the NYS Attorney General Website, Mortgage Settlement section.
Student Loan Help!
By: Danielle Castro, Marketing Intern
As college students we strive for the
best. We go to college in hopes of
enhancing our knowledge, landing a
good job upon graduation, and earning a living wage. Unfortunately,
the reality for many is a struggle to
find that perfect dream job. During
the post-graduation job search, many
people find themselves facing the
difficulty of paying existing expenses. To add fuel to the fire, six
months after graduation the student
loan bills begin to roll in.
With one out of three college graduates struggling to pay back their student loans, CCCS of Rochester/
RethinkingDebt decided that something needed to be done. If the
proper education is available to college students and graduates, paying
back student loans wouldn’t have to
be so stressful. CCCS of Rochester/
RethinkingDebt has been designing a
plan to help the students of our com-
Our new service will begin in midAugust 2012. In your first counseling session, we will help with the
following:
-Locating your loans, credit report,
and score
-Look at repayment options
-Review your eligibility
-Look at the possibility of consolidation
-Schedule a subsequent appointment
if needed
Have a group of people you would
like to reach? Be on the look out for
munities avoid some of the stress
our education classes for people who
that coincides with student loans.
are new to student loans (first time
Whether you need individual coun- college students and parents) or for
seling or general education to guide people who just want to learn their
you along the path to being free from repayment options.
student loans, we have an array of
Call to make your appointment today
resources to aid you.
with one of our certified advisors
and get rid of that stress!
Back-to-School Shopping
By: Lynette Baker, Director of Outreach and Marketing
It’s hard to believe that it’s almost
time for the kids to head back to
school! It can be exciting starting a
new year with new things to learn,
but back-to-school can be a stress on
your finances though. For parents, it
can be an expensive annual tradition.
If you plan ahead, there are plenty of
ways to control the expenses. The
following are some tips to help with
your back-to-school shopping.
tity. Some things will be needed
again and again throughout the
school year, like pens, pencils, paper,
etc. Buy more now.
Shop online first This is a great way
to save time and gas. If the retailer
offers free shipping, it makes sense
to purchase from your own home
too! If they don’t, you can at least
compare prices before heading out.
Always have a plan Take inventory
of what you need, what you might
pons and/or run sales at this time of
already have at home and make a
year. Compare prices and get the
list, then stick to it!
best deal!
Clip coupons and be on the lookout for sales Many stores offer couPage 2
Buy in bulk Often you can get better
prices when you buy a larger quan-
Try some of these tips and back-toschool will hopefully not be as
stressful to your budget.
Math, Science, English….Personal Finance?
By: Shaun Morrison, Esq., Compliance Specialist
Given the unstable economic
times we live in, the need for financial education among young
people has never been more vital.
The financial world in which consumers must navigate has changed
significantly and grown more
complex. Financial literacy focuses on the specific knowledge
and concepts consumers need to
know in order to manage their
money and build wealth.
New York. At the time of this article both Bills have been referred
to the Committee on Education for
review.
Financial literacy is one factor in
the larger analysis of the financial
capability of consumers, which is
the broader picture of how consumers manage their resources
and how they use financial literacy
to make prudent decisions. Informing consumers of the imporA review by the Council for Ecotance of financial responsibility at
nomic Education shows that only
a younger age may prevent future
13 states require high schools to
economic downturns spurred by a
offer courses in personal finance
lack of financial knowledge. Eduand only 4 require students to take In New York, the State Education cation in credit cards, mortgages
a course in order to graduate.
Department’s Regulation 100.5
and student loan borrowing may
Even more troublesome are the
mandates that all students first en- prove more useful than a lecture in
results of a 2010 Capital One
tering the 9th Grade must earn a
the relationships between sine,
study that illustrated that 45% of half-unit of credit in economics or cosine and tangents.
graduating high school seniors
its equivalent. This requirement is
claimed they were incapable of
currently satisfactory to the Board
managing their money.
of Regents. However, two separate Bills have been introduced in
Unfortunately, it would be impru- the Assembly and the Senate that
dent to think that college students in effect would significantly
are any savvier regarding their
strengthen financial literacy repersonal finances. According to
quirements. The first Bill would
Sallie Mae, 50% of college stumandate instruction in financial
dents have 4 or more credit cards education to pupils in grades 9
and the average amount of student through 12. The curriculum
credit card debt is greater than
would include, but not be limited
$4000. The study also found that to, the basics of financial planonly 17% of students said they
ning, budgeting, borrowing, interregularly paid off all cards each
est rates and personal insurance
month, and another 1% had parpolicies.
ents, a spouse, or other family
members paying the bill. The re- Concurrently, the latter Bill promaining 82% carried balances and poses to require a financial literthus incurred finance charges each acy course for juniors and seniors
month.
at secondary schools and students
at state and city universities of
Page 3
Horizons at Harley
By: Andrea Colline, Outreach Coordinator
Consumer Credit Counseling Service of Rochester took part in the
Horizons at Harley program for
the first time this year. The summer program is a blend of academic, cultural, and recreational
activities designed to be fun and
enriching with the purpose of developing and enhancing selfesteem and promoting the value
of learning. The Horizons program has served low income, city
of Rochester students in kindergarten through 8th grade since
1995.
This year, our employees instructed a two week course in Fi-
Credit Union partnered with
CCCS in opening savings accounts for the children. The Horizons program donated a $25.00
deposit in the children’s bank account and CCCS of Rochester
matched the amount with another
$25. The students received a total
of $50 to start their savings accounts. The program was both
educational and fun. We plan to
nancial Literacy. We discussed
continue this relationship in fubudgeting, money management, ture years. It is never too early to
and ways to save money when
start learning about your finances.
shopping. We also introduced the To learn more about Horizons at
students to credit cards and credit Harley, visit
reports. Advantage Federal
www.horizonsatharley.org .
The Importance of Saving!
By: Katie Martino, Client Support
Many adults do not realize the
importance of saving. Not only is
it important to have a nest egg
greater or equal to one year’s living expenses, but it is also important to think well ahead into your
retirement years. Your nest egg is
strictly for emergencies that are
caused by loss of employment or
serious illness where as savings
can be used to buy your first
home, invest in a 401K or IRA ,
or for any future plans, including
marriage, college tuitions, etc.
monthly just to meet the
$54,000.00 in savings!
$18,000.00, before the interest
you can gain from a financial institution!
Many people never see the importance of saving and spend all their
working income on frivolous
Some may think they don’t make wants rather than future needs. If
enough to have savings. Instead
a 20 year old set aside $100.00
of having that cup of expensive
monthly, by the time they are 65
coffee in the morning or a fast
years old, they will have saved
food lunch, you could be saving $54,000.00 before any interest, as
approximately $5.00 a day. In ten opposed to someone at the age of
years, that savings could exceed 50 who will need to save $300.00
Page 4
Not everyone is able to save
$100.00 monthly but try to save
whatever you can. Something is
better than nothing! Always distinguish between a want and a
need whenever possible.
If you are finding that you are just
not able to budget properly, find a
financial planner that may be of
no charge or minimal charge for a
money management session, or
call CCCS of Rochester/
RethinkingDebt. Our certified
advisors provide counseling on
money management for free.
Make an appointment or attend
one of our free workshops today!
Free Legal Help for Homeowners
By: Kevin Purcell, Staff Attorney, Empire Justice Center
Did you know that if you are
struggling with your mortgage
and facing foreclosure, there are
professional and FREE services
available from local attorneys to
help you understand the foreclosure process?
We know that the possibility of
losing your home can be incredibly frightening, and at times a bit
overwhelming. But there is help!
Empire Justice Center, a local
not-for-profit law firm, offers two
free legal clinics every month for
anyone who wants to better understand the foreclosure process.
The legal foreclosure process is a
game with its own set of rules and
regulations. If you don’t know
the rules of the game, how can
you possibly win in the end? The
clinics are developed to teach you
the rules and to enable homeowners to take some control over a
very stressful and confusing process.
Under New York State law, most
homeowners in foreclosure are
entitled to a “Settlement Conference”. This will occur early in
the foreclosure process (once a
homeowner has been served with
a Summons and Complaint), and
will involve the homeowner and
an attorney for the bank appearing before a judge, or judge’s law
clerk. The goal of the Settlement
Conference is simple: to attempt
to come to some alternative to
foreclosure.
The Settlement Conference is a
relatively new process, having
been created by the New York
State Assembly three years ago.
We understand that it can be incredibly frightening for homeowners to receive the letter telling
them they have to attend the Settlement Conference. It makes
sense – most of us try to avoid the
courthouse if we can! In this
case, however, attending your
Settlement Conference represents
the best chance you will have to
save your home. If that is your
It was created at the urging of
goal (or even if it is just to limit
housing counselors and legal ad- the impact losing your home will
vocates around the State, who
have on you), it is vital that you
saw that homeowners were not
attend your Settlement Conferbeing treated fairly by their banks ence.
when they fell behind on their
To learn more about the details of
mortgages. Paperwork was getthe foreclosure process, and what
ting “lost”, questions were not
you should be doing at any given
being answered, and homeowners stage of that process, we encourwere growing increasingly frus- age you to attend the FREE clintrated. The Settlement Conference ics put on by Empire Justice Cenis there for YOUR protection, and ter. Dates and times for these
ensures that someone is watching clinics in Monroe County are
out to make sure the banks are
listed below!
doing what they are required to
do under New York and federal
law.
Hall of Justice, Rm 25– 12:301:30pm– Aug. 29, Sept. 26, Oct.
There are several alternatives to
foreclosure that may be possible 31, Nov. 28, Dec. 19
for homeowners: entering some
form of a loan modification
(which would allow you to keep United Way Building, 1st Floor
Conf Rm – College Ave– 6-7pmyour home and have a revised
mortgage payment), agreeing to a Aug. 9, Sept. 13, Oct. 11, Nov. 8,
repayment plan (which would al- Dec. 11
low you to keep your home by
paying back all missed payments
to the Bank over a short period of For dates and times in other locatime), or entering a “short sale” or tions, contact your local Empire
Justice Center or go to
“deed in lieu of foreclosure”
www.empirejustice.org .
(which would not allow you to
keep your home, but would limit
the negative consequences to your
credit).
Page 5
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Rochester, NY 14607
Phone: (585) 546-3440
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