Bank of America Sued for Requiring Proof of Payment of Social Security Disability Benefit for Home Loans

Bank of America is facing a disability lawsuit after the US Department of Housing and Urban Development (HUD) found out that it violated federal laws when it discriminated home buyers with disability by requiring proof of payment of social security disability benefits.

In statement released by the HUD, it claims that the Charlotte, North Carolina-based bank imposed unnecessary and annoying requirements to borrowers relying on social security disability benefits to qualify for their home loans.

The statement further explained that to secure a home mortgage loan with the said bank, a disabled borrower must first provide physician statements to qualify for home mortgage loans, as well as proof of continuance of the borrower’s social security disability benefits.

In the lawsuit filed by two borrowers in Michigan and one in Wisconsin, the borrowers attested that the bank required them to submit medical information and documentation regarding their disability together with their proof of continuance of their disability pay to qualify for a loan.

Aside from being a violation to the Fair Employment and Housing Act (FEHA), holding home buyers with disabilities to a higher standard just because they rely on disability payments is unlawful, according to HUD assistant secretary for fair housing and equal opportunity, John Travina.

He added that Mortgage companies may verify income and have eligibility standards, but may not single out disabled home buyers to deny or delay financing if they are otherwise eligible.

The case against the said bank has been forwarded to the US Department of Justice. However, in a statement released by the bank, it says that there is no basis for the allegations regarding disability discrimination in connection with home mortgage lending.

Disabled homebuyers should not be treated unfairly. They must enjoy the same benefits and opportunities as what the others experience such as the said home mortgage loan.

Under the FEHA and the Federal Title I of the Americans with Disabilities of 1990, discriminating based on disability is strictly prohibited. Take note that disability discrimination does not only apply to employees in the workplace but also with other people like the borrowers who filed the lawsuit against the bank.

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Determine if Your Social Security Income is Taxable or Not

Many people are not aware that the 2011 social security income they received may be taxable. Under federal law, all social security income / SSI (SSI) recipients should fill up Form SSA-1099 provided by the Social Security Administration. The said form will reveal the total amount of a recipient’s benefits.

Here are a few guidelines to help you determine whether your Social Security Income / SSI and Social Security Disability Benefits are taxable or not:

• Know how much (if there is any) of your Social Security Income is taxable based on your total income and marital status.

• Worry no more if your Social Security Income is the only income you have for 2011. If this is the scenario, then your benefits are not taxable and, definitely, there would be no need for you to file an income tax return.

• If you have other sources of income, your benefits will not be taxable; certainly not if your modified adjusted gross income is more than the base amount for your filing status. Base amounts are as follows:

* For married couple filing jointly - $32,000
* For single or family head, qualified widow/widower, and married couple filing separately and do not live together - $25,000
* For married couples living together - $0

• Taxable benefits and modified adjusted gross income can be seen on a worksheet in the Form 1040-A or the Form 1040 Instruction booklet. A recipients’ tax software program can also figure this out.

• To determine if some of your benefits may be taxable, you can do your own quick computation. Just follow these few simple step below:

1. Add the half of the total security income you received from all your other income.
2. Compare your total income to the base amount of your filing status. If the result is more than your base amount, some of your benefits may definitely be taxable.

The Social Security Income / SSI is not based on a recipient’s prior work but on need, rather than the amount paid into the program or the length of time worked. It is a federal program created to supplement the income of less fortunate people. Thus, the Social Security Agency is taking into consideration which amount of the social security income is taxable and which is not.

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Federal Court of Appeals Rules Over Seniors with Social Security

A Federal court of appeals in Washington last Tuesday ruled that seniors who are currently receiving their social security disability benefits cannot reject their lawful right for Medicare benefits.

In this rare case, a group of seniors including the Former House Majority Leader Dick Armey sued to terminate their automatic eligibility for Medicare.

However, in a separate decision, the appeals court ruled that the law provides them no way to opt out their Medicare eligibility while keeping their social security benefits.

The plaintiffs want their eligibility to Medicare to be terminated since their private insurers are limiting their coverage. However, they would prefer the coverage from their private insurer.

In a majority opinion joined by two other republican appointees, Judge Brett Kavanaugh noted that they understand why the plaintiffs are becoming frustrated with their insurance situation as well as their desire for a better coverage in their private plans. He further explained that when the plaintiffs applied for a social security, they also agreed with the law that states that recipients over 65-year old are automatically entitled to Medicare Part A which covers services like hospital, nursing home care.

The problem here is that the plaintiffs wanted to stop their Medicare but never wanted to lose their social security benefits since they believed that they earned the same.

Ironically, a lot of people apply for social security and sometimes make an appeal for their benefits or an increase of benefits. On the other hand, said plaintiffs here are making an appeal to lessen the benefits they are receiving from the social security. It indeed sounds ridiculous but that is how life goes for these people.

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A Simple and Mild Stress Could Lead to Long Term Disability

According to a large population study which was published online by the Journal of Epidemiology and Community Health, even a simple and mild stress can lead to long term disability.

Mental health problems are commonly associated with long term disability but the effect of a milder form of psychological stress is possibly to have been underestimated according to the author of the study.

In the study, the authors tracked the health of more than 17,000 working adults up to the age of 64 from 2002 to 2007. Workers involved in the study were randomly selected in a specific area. All participants of the study were asked to complete a validated questionnaire to measure not only their mental health and stress levels but also the other aspects of their health and wellness.

At the beginning of the study, participants with a high level of stress associated with a significantly high possibility of having a disability were awarded by long term disability benefits. Subsequently, even those with mild stress have a 70% risk of long term disability – making them eligible for the disability benefits considering the other factors that could possibly influence the result like unhealthy lifestyle and alcohol intake.

The authors noted that it is necessary to consider their findings in the overall situation of modern working life that puts greater demands on workers and social factors, like fewer close personal relationships and supportive friends and relatives.

In the end of the study, authors concluded that though mild stress should not be over-treated instead giving proper attention and taking it more seriously are suggested.

Usually, long term disability benefits are provided by employers to their employees through a private health insurance companies. However, filing for a claim is never easy. Therefore, to make a successful claim, make sure that your claim s supported by legal documents such as a solid medical care and you may also consult a long term disability lawyer to avoid being denied for your benefits.

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Important Factors to Consider When Estimating Compensation for Accidents and Disability Benefits

In filing for a lawsuit, it is very important to calculate the cost of your lawsuit to help you to determine if the cost of your lawsuit is worth bringing it to the court or is it being too much.

Both under price and over price lawsuit can be misleading. The first one might just drain one’s financial resources while the latter might cause a lawsuit to be dismissed.

Below are some of the few important factors to consider when pricing for a lawsuit whether it’s a personal injury claim or a disability benefits lawsuit.

• Determine the Medical Expenses – in pursuing a lawsuit, it’s the most important thing to consider. Calculate your medical expenses from the past, present and until for the future. This will include doctor’s bill, medical treatment, therapy and other related fees.

• Compute for the Lost Wages – an injured or a disabled person may not be able to come back to work immediately. If one doesn’t work, he or she would not be paid and may lose a lot of money. However, an employee may claim for compensation for lost wages in a lawsuit. Thus, a wage earner should estimate his or her lost wages resulting from to his or her personal injuries or disability.

• Determine if an Injury Leads to Disability – once an injury sustained by a wage earner leads to permanent disability, then it should absolutely be included at the lawsuit value. Most often, disability provides higher compensation.

• Property Loss – this is only applicable for personal injuries only. This is when any of a victim’s property was damaged from the accident such as a damaged vehicle, house or other belongings.

Though the above-mentioned factors are most important to consider when estimating for your claim, you should remember that the amount of claims may still vary depending on the lawsuit. It’s still best to consult a lawyer like a California disability attorney which is an expert in helping clients with the calculation of their claims most especially in a permanent disability case.

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