Civil Rights, Consumer and Housing Groups Say Proposed Bailout Does Virtually Nothing to Assist Troubled Homeowners


Center for Responsible Lending
October 1, 2008

As civil rights, consumer, and housing organizations that represent homeowners and communities devastated by the foreclosure crisis, we are extremely disappointed that the proposed bailout package does virtually nothing to assist troubled borrowers.  Provisions discussed in both the House and the Senate to assist homeowners modify their loans and save their homes have been largely abandoned.  These provisions would have addressed the root cause of the current economic crisis by helping to stop the decline in home prices and would have given relief through the bankruptcy courts, required affordable loan modifications, and spared families the unfair tax burden associated with restructuring predatory loans.  An opportunity to help communities on Main Street recover from the devastating effects of the financial meltdown has been squandered.  Now that Wall Street’s needs are being addressed, we expect that the next order of business will be to get back to work for the struggling families left behind.

ACORN
Center for Responsible Lending
Consumer Action
Consumer Federation of America
Lawyers’ Committee for Civil Rights Under Law
Leadership Conference on Civil Rights
National Association for the Advancement of Colored People (NAACP)
National Association of Consumer Advocates
National Association of Consumer Bankruptcy Attorneys
National Association of Neighborhoods
National Community Reinvestment Coalition
National Consumer Law Center on behalf of its low income clients
National Fair Housing Alliance
National Policy and Advocacy Council on Homelessness
Rainbow Push Coalition

For more information: Kathleen Day at (202) 349-1871 or kathleen.day@responsiblelending.org; Chris Kukla at (919) 313-8520 or chris.kukla@responsiblelending.org: or Ginna Green at (510) 379-5513 or ginna.green@responsiblelending.org.

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About the Center for Responsible Lending

The Center for Responsible Lending is a nonprofit, nonpartisan research and policy organization dedicated to protecting homeownership and family wealth by working to eliminate abusive financial practices. CRL is affiliated with Self-Help, one of the nation's largest community development financial institutions.