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Press Releases

March 26, 2010
"We welcome the Administration's stronger actions to stabilize the housing market, particularly doing more to lower loan balances on homes worth less than the mortgage. Foreclosures dragged us into the recession, and until we stop them, the economy will not recover and most homeowners will watch their hard-earned home equity drain away. Since 2007, we have had 6.6 million foreclosures filed across the nation, and by 2012 that number may climb as high as 13 million. The result is lower home values for everyone. That means most families have less equity to help pay for things like college...
March 25, 2010
"Bank of America's (BofA) new program to reduce loan balances for a defined group of distressed homeowners highlights our nation's very serious foreclosure situation. Today, nearly 1 in 4 homeowners is struggling to stay in a home that's worth less than their mortgage. BofA's initiative responds to a widelyacknowledged reality: reducing a loan's principal balance is a crucial tool for stopping foreclosures and stabilizing the housing market. We urge BofA to implement their principal reduction program quickly and comprehensively. This initiative is a very positive step, but more is needed...
March 23, 2010
"Yesterday's vote by the Senate Banking Committee to move forward with financial reform sends an important message that Congress must change the rules so that consumers are protected from unfair practices, our economy is protected from the damage of bad lending, and taxpayers won't have to pay for another Wall Street bailout. We are encouraged by the bipartisan collaboration between Chairman Dodd and Ranking member Shelby, and the Committee's efforts to hold Wall Street accountable in spite of an allout assault by industry lobbyists to block needed financial reforms. We support the...
February 19, 2010
The Mortgage Bankers Association (MBA) reported today that serious mortgage delinquencies—those at least 90 days past due or in foreclosure—remained at record levels in the fourth quarter of 2009. These latest statistics show that one in 10 borrowers is seriously delinquent on their mortgage, up from one in 16 borrowers a year ago and one in 33 two years ago. The Treasury Department this week issued figures showing that under the Home Affordable Modification Program the number of permanent loan modifications has increased to 116,000 total. Every additional homeowner who is...
January 28, 2010
Last night the President highlighted the need for jobs and health care reform for middle-class families, but Americans also need relief in the housing market and financial reform. First, we need stronger measures to stop preventable foreclosures. The financial crisis started in the housing market, and foreclosures continue to drag down the entire economy. Banks should be required to take reasonable steps to help families stay in their homes.Second, we urge the President and Congress to create a strong, independent watchdog over the big banks to make sure they don't cause another crisis and...
December 24, 2009
As the year ends with a spotlight on pending health and financial reforms in Congress, the Federal Reserve closed its comment period for mortgage rules that could save families billions of dollars. In a detailed comment letter, the Center for Responsible Lending recommends that the Federal Reserve Board strengthen a proposal to ban routine kickbacks for steering borrowers into unnecessarily risky or expensive home loans. If finalized as proposed, the ban on kickbacks (often called "yield-spread premiums") would apply to mortgage brokers, loan officers, and any party that originates mortgages...
December 11, 2009
Statement from Michael Calhoun President of the Center for Responsible Lending Washington, D.C. – "We are very pleased the U.S. House of Representatives has taken an important step toward restoring our country's financial stability by voting to pass the Wall Street Reform and Consumer Protection Act of 2009 (H.R. 4173). The bill would provide consumers with significant protections from the industry practices that dismantled our economy and those of countries around the world. We commend the House for this vote to protect families and small business from unfair, unsafe financial...
November 30, 2009
Statement of Michael Calhoun, PresidentCenter for Responsible Lending "The Obama administration's latest adjustments to its nine-month-old foreclosure prevention program do little but highlight the continued failure of lenders' voluntary efforts to stop the foreclosure crisis. The number of Americans in foreclosure continues to rise dramatically, with up to three million new foreclosure starts this year alone, a trend that undermines economic recovery. To address the foreclosure crisis that's at the root of the current slump will require more comprehensive action. Specifically, Congress...
November 19, 2009
The Mortgage Bankers Association (MBA) reported today that a record number of loans—1 in 7—is delinquent, up from 1 in 10 a year ago. Today's numbers also show that 1 in 22 families in the U.S. is in the process of losing their home, up from 1 in 34 a year ago. Based on these figures, we are now on track for 2.9 million foreclosure starts in this year alone. The lenders' trade association is quick to blame this worsening trend on higher unemployment levels. But that ignores the fact that reckless lending precipitated the economic crisis and prolongs it each day with every new...
November 10, 2009
Statement by Mike Calhoun, President of the Center for Responsible Lending: "The draft legislation to create a Consumer Financial Protection Agency unveiled today by Senate Banking Committee Chairman Christopher Dodd is an essential component of urgently needed financial reform. Unfortunately, the banking lobby will exert intense pressure to weaken the bill by carving out special exemptions for some lenders and also by hobbling states' ability to address lending issues in their own jurisdictions. Committee members will need to resist the banking lobby's influence if they are to craft...

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