CRL in the News

Credit union advocates and lawmakers are arguing over the benefit of overdraft protection credit union programs as the CFPB considers new rules. The Consumer Financial Protection Bureau (CFPB) has recently been soliciting public opinion on potential changes to the rules that govern overdraft fees. In a financial climate where consumers are growing increasingly frustrated with excessive overdraft fees, changes to overdraft rules could be critical for both financial institutions and their customers.

In the wake of the financial crisis, the Consumer Financial Protection Bureau (CFPB) was established to stop predatory financial activity central to the collapse. For years, the CFPB has stood up to financial predators, holding companies acting in bad faith accountable for wrongdoing and returning $12 billion of ill-gotten profits to consumers. When the CFPB saw predatory payday and auto title lenders targeting the poorest Americans with high-interest debt traps, it studied the issue for five years and proposed a new consumer protection rule to end the predation. Today, the Trump

Our team sat down and spoke with Cheye-Ann Corona, Senior Policy Associate with the Center for Responsible Lending (CRL), to have her shed some light on common issues in the student loan industry. The CRL is part of the Self-Help Credit Union, a member-owned credit union, non-profit loan fund, and policy advocacy organization that works to help low-income families strengthen their economic opportunities. “People who have large student debts are not able to access the mortgage market because of how significant their debt to income ratio is. That’s also part of what has informed our involvement

The higher education system is broken, but instead of fixing it, the Department of Education is intent on breaking it even more. The gainful employment rule was an Obama-era regulation that protected against the predatory loan practices of for-profit colleges by monitoring their students’ ability to earn back their debt after graduation. Last week, the Department of Education repealed it, the culmination of their years-long attempt to free for-profit colleges from what Betsy DeVos deemed as unfair targeting of for-profit institutions by Democrats. The rule was simple, it made sure students

The question of what will happen in mortgage lending after the government-sponsored enterprise (GSE) Patch expire in January 2021 is the focus of a new report published by the Center for Responsible Lending (CRL). “ A Smarter Qualified Mortgage Can Benefit Borrowers, Taxpayers, and the Economy” calls on the Consumer Financial Protection Bureau (CFPB) to formulate a strategy that would address mortgage origination when the GSE Patch option has ended. The CRL noted that 3.3 million loans guaranteed by the GSEs over the last five years—roughly 19 percent of the total approved volume—would not

According to a survey by Bankrate, roughly 25 percent of Americans live paycheck to paycheck. The money they make just barely covers their day-to-day expenses, with little or nothing left over for emergencies. If you’re in this situation, any unplanned expense – such as a $300 car repair – can cause a financial crisis.

After the government-sponsored enterprise patch expires, "near prime" loans over the 43% debt-to-income ratio should be qualified mortgages if they have compensating factors, according to a new Center for Responsible Lending report.

According to the Center for Responsible Lending, interest rates on these loans average 24 percent: 3 to 4 times the average rate for used car loans.

After serving overseas, military service members return home to face a new economic reality that often includes, unfortunately, lenders looking to take advantage of their vulnerability. These so-called predatory lenders, which pop up around military bases, try to entice or deceive young soldiers into taking out loans that impose abusive or unfair terms. “Predatory lenders like to prey on young military members because they’re often inexperienced with money, have little to no credit and are usually very excited to spend that first paycheck,” said certified financial planner Tara Falcone

After serving overseas, military service members return home to face a new economic reality that often includes, unfortunately, lenders looking to take advantage of their vulnerability. These so-called predatory lenders, which pop up around military bases, try to entice or deceive young soldiers into taking out loans that impose abusive or unfair terms. “Predatory lenders like to prey on young military members because they’re often inexperienced with money, have little to no credit and are usually very excited to spend that first paycheck,” said certified financial planner Tara Falcone