News: DCRS & Jumbo Loans

For a long time, Debt Counsellors have been stymied when trying to include jumbo loans into proposals generated by the DCRS System.

“Jumbo Loans” is the term Debt Counsellors use for really big loans that are repaid over a very long time period.

DCRS is a debt review proposal system based on industry agreements and funded primarily by BASA and credit providers. The system is designed to come up with proposals that all parties feel are fair and as a bonus includes many great concessions for consumers.

When using DCRS most smaller loans can be recalculated and a plan worked out over 60 months but Jumbo loans are so big they throw the math out and cause problems.  For a long time, Debt Counsellors have been encouraging the credit providers to look at ways to try include these massive loans into the software that runs the calculations in the background and tries to treat all credit providers fairly.

Provisional funding has now been granted by the National Industry Steering Committee (NISC) to find ways to successfully incorporate these products in DCRS without messing up payments to all other credit providers. These will be discussed, designed and tested in the months ahead.