Press Releases & Commentary
- New Mortgage Rule Good News for Home Buyers
October 23, 2014
On September 22, 2014, financial regulatorsissued final rules to define a Qualified Residential Mortgage (QRM). The new rules are meant to define the risk retention rules for lenders as called for in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
- Spotlight on Growing Threat of Predatory Payday Loans in CA
October 17, 2014
Center for Responsible Lending staff and consumer advocates based in Los Angeles gathered on October 10 to spotlight the threat posed by Predatory Payday Lending.
- NC Attorney General to Spotlight Impact of Abusive Lending at CRL Event
October 10, 2014
On November 6 at 5:00 p.m., the Center for Responsible Lending (CRL) and Duke University’s Sanford School of Public Policy will host North Carolina Attorney General Roy Cooper for CRL’s inaugural Protecting Community Wealth event, the first event in a series that will be hosted across the country focused on how regulators, policymakers and all Americans can work together to end abusive practices in financial markets and increase economic security for all people.
- Report: CA Payday Lenders Rely on Repeat Borrowers
October 9, 2014
A Center for Responsible Lending analysis of two new reports on the payday lending industry from the California Department of Business Oversight (DBO) shows that payday lenders, who advertise their products as a one-time quick fix for consumers facing a cash crunch, generate 76% of their revenue from borrowers who take out 7 or more loans per year. The DBO’s Annual report and Industry Survey come as the Consumer Financial Protection Bureau (CFPB) is considering new rules aimed at curtailing abuses in the payday lending industry. The Department of Defense also recently proposed new rules to further protect service members under the Military Lending Act, and Members of Congress have introduced a bill to cap interest rates on consumer credit products at 36%.
- New Research Shows For-Profit Colleges Disproportionate Impacts
October 3, 2014
For-profit college attendees are more likely to incur unmanageable student loan debt and be unable to graduate than their peers attending other schools, according to new research released today by the Center for Responsible Lending. African-American and Latino students in particular have a high risk of experiencing these poor outcomes at for-profit colleges, which have a long record of engaging in deceptive practices to pressure students to enroll.
- Federal Appeals Court Upholds New York Ruling on Internet Payday Loans Rejects Industry Misuse of Tribal Sovereignty
October 2, 2014
The Second Circuit Court of Appeals affirmed an earlier decision by the District Court for the Southern District of New York. In August 2013, the State of New York issued cease-and-desist orders to more than 35 payday lenders offering and making internet loans to state residents at annual interest rates in excess of 300 percent – more than 10 times higher than what is permitted by New York state law. Beyond tribal lenders, these loans also included foreign ones with stateside headquarters where no interest rate caps existed for short-term loans. New York officials also alerted banks and other financial services companies of the illegal activity and asked them to ensure they were not facilitating electronic transfers of illegal loans. Two payday lenders associated with two federally-recognized Indian Tribes subsequently sued New York, seeking to prevent the state’s demands for compliance with the law. Instead, the District Court decided that New York’s actions were appropriate.
- New Data Shows Important Market Segments Remain Locked-out of Conventional Mortgages in Slowly Recovering Housing Market
September 30, 2014
The 2013 Home Mortgage Disclosure Act (HMDA) data confirms a persistent lack of access to the conventional mortgage market for African-Americans, Latinos, and middle class families.
- Department of Defense Proposes Rules to Strengthen Military Lending Act,
September 26, 2014
Today, the Department of Defense released proposed rules to further protect service members and their families from predatory lending practices. If fully implemented, these rules will strengthen protections under the Military Lending Act and close loopholes unscrupulous lenders use to target military families with unconscionable high-cost loans.
- Department of Defense Proposed Rule
September 26, 2014
Today, the Department of Defense released proposed rules to further protect service members and their families from predatory lending practices. Below is a summary of the changes.
- CitiBank’s New Checking Account Has No Checks or Overdraft Fees
September 24, 2014
This week, CitiBank became the latest in a band of banks to unveil a new checking account – one without checks or overdraft fees. This move not only underlines the rapidly declining use of checks – but also awareness about the harmful financial effects bank fees have on consumers, especially economically vulnerable consumers.