CRL in the News

“Latinos are likely to delay important financial decisions, like purchasing a home, because of their student loans, which ultimately keeps them in a cycle of debt,” said David Ferreira, senior government affairs manager at the Center for Responsible Lending.

“Almost 1 in 4 borrowers were getting ready to be in default or at risk already. About 2.6 million borrowers were already in this risk factor. So what we want to make sure this on-ramp process is safe for borrowers. We don't want to widen that gap,” said Jaylon Herbin, the director of Federal Campaigns for CRL. Herbin says there are things borrowers can do to ease the stress of these payments. First, know your loan servicer because many of them changed during the pandemic. Second, confirm your balance, interest rate and monthly payment. That information is available in your online account

"Es probable que los latinos retrasen decisiones financieras importantes, como comprar una casa, debido a sus préstamos estudiantiles, lo que en última instancia los mantiene en un ciclo de deuda", dijo David Ferreira, gerente senior de asuntos gubernamentales del Centro para Préstamos Responsables.

Jaylon Herbin, student loan lead for the Center for Responsible Lending, a nonprofit financial policy organization, said a first step for borrowers is to locate their loan servicer since many servicers have changed over the past three years. Borrowers can check by logging on to studentaid.gov. Once borrowers are logged in, Herbin said they should also make sure to check that their loan amount is correct.

“Everyone deserves to be their Flamin’ Hot self, but student loans can create a significant burden on college graduates – especially at HBCUs where students graduate with 19% more debt than those at non-HBCUs,” said Tina Mahal, senior vice president of marketing at Frito-Lay, citing Center for Responsible Lending data. “The Flamin’ Hot University scholarship fund at TSU was designed to ease some of the financial pressures student loans bring so graduates can focus on unleashing their hottest potential.”

In CFPB v. CFSA, Supreme Court will decide whether to overturn an unprecedented Fifth Circuit Court of Appeals ruling, which has implications not only for the CFPB’s 12 years of rulemakings, enforcement and supervision, but also for numerous other agencies that Congress chose to fund outside of appropriations, such as the Federal Reserve and Social Security. Leading voices from these three groups, plus constitutional scholars and financial sector experts will provide an overview of the case and its consequences, with an emphasis on constitutional law, consumer protection, and market stability.

Yet being able to put down very little on a home is “a very powerful tool to expand access to credit, if it is done responsibly,” Mitria Wilson-Spotser, vice president and federal policy director at the Center for Responsible Lending, told MarketWatch. “Most lenders actually write mortgages to the conventional mortgage standard, which is the standard that’s established by Fannie Mae and Freddie Mac, and the Federal Housing Administration,” she said. “A 1% down payment does not violate any of those requirements.“

"The harm would be profound," said Ellen Harnick of the Center for Responsible Lending, a consumer advocacy group. "The market disruption, if existing rules are called into question, would be hard to overstate. ... All of the problems that led to the creation of the CFPB would now be unattended to."

Some cash advance apps push customers to pay a “tip” to the app to be able to access their funds. The term “tip” is effectively a way for apps to disguise fees, said Yasmin Farahi, deputy director of state policy and senior policy council at the Center for Responsible Lending. Consumers often don’t know that these fees are optional and cannot figure out how to opt out of them, she added. Employer-backed early wage services don’t ask for tips, but they may begin to if regulators allow it in the future, Andrew Kushner, policy counsel at the Center for Responsible Lending, told Vox. The fees can

Consumer advocates have expressed disapproval of Republican initiatives to reduce aid. "We condemn this move to block a plan that will provide significant financial relief to low-income borrowers and communities of color," said Jaylon Herbin, director of federal campaigns at the Center for Responsible Lending, as reported by CNBC.