National Consumer Law Center

The LIBOR is a benchmark index, also known as a reference rate, that is commonly used in millions of adjustable rate mortgages, home equity lines of credit (HELOCs), and student loans. Although it is still widely used, the index will no longer be available in its current form after June 30, 2023 and will cease to exist entirely on September 30, 2024. That means creditors and servicers will need to find and implement a replacement index for every contract still using the LIBOR at that time. This change should not require consumers to take any action.

To promote sustainable homeownership and prevent unnecessary foreclosures and loss claims, the United States Department of Agriculture's Rural Development agency should adopt four critical servicing policies.

Mortgage servicers are the companies that accept loan payments from borrowers. Servicers are distinct from the lender, the entity that originated the loan, or the current holder or investors, who stand to lose money if the loan fails. Some servicers are affiliated with the originating lender or current loan holder; many are not. Yet, while servicers normally have the power to modify loans, they simply are not making enough loan modifications. Why? One answer is that the structure of servicer compensation generally biases servicers against making widespread loan modifications.

NCLC filed this amicus brief, joined by several consumer groups, asking the 11th Circuit for rehearing en banc in Salcedo v. Hanna, 936 F.3d 1162 (11th Cir. 2019).  The case holds that a consumer lacked Article III standing under Spokeo to bring a class action under the TCPA against a firm that sent him, and thousands of other individuals, an unwanted telemarketing text message.