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Press Releases

July 2, 2008
HOPE NOW claims in a press release today that the mortgage lending industry's program of facilitating voluntary workouts for distressed mortgage holders has helped 1.7 million borrowers stay in their homes. Once again, a closer look at HOPE NOW's data shows these numbers greatly overstate the help being provided and that the foreclosure crisis continues to accelerate and overwhelm industry's voluntary attempts to renegotiate unaffordable home loans. HOPE NOW servicers have been at this for a year now. Clearly they have failed. Delinquencies and foreclosures keep going up, and tens of...
June 30, 2008
Read the report (PDF)>> As IndyMac Bancorp battles questions about its financial stability, a new report from the Center for Responsible Lending provides evidence that IndyMac put itself in a hole by engaging in unsound and abusive lending during the nation's mortgage boom. The report, "'IndyMac: What Went Wrong?," finds substantial evidence that IndyMac routinely made loans with little regard for their customers' ability to repay the loans. CRL's interviews with former employees and a review of lawsuits in 10 states indicate that IndyMac pushed through loans based on...
June 5, 2008
New reports from lenders show that families falling behind on their mortgage payments, as well as those facing imminent foreclosure, have reached record highs. The trend indicates the mortgage crisis continues to worsen and is overwhelming the industry's voluntary efforts to help borrowers renegotiate unaffordable home loans. The market has shown that it cannot fix itself. Federal and state policymakers need to do more to hold lenders accountable and stem the foreclosure crisis that is damaging our economy. According to the Mortgage Bankers Association's National Delinquency Survey,...
April 14, 2008
In its April 10, 2008 press release, HOPE NOW claimed that the program, by facilitating voluntary workouts by servicers, has enabled 1.2 million homeowners to stay in their homes. The release touts this statistic, as well as the high proportion of subprime loan workouts comprised by loan modifications, as evidence of the industry's commitment and ability to prevent foreclosures. However, a closer look at the HOPE NOW data reveals that, notwithstanding efforts by servicers, the current crisis in the housing market simply dwarfs the mortgage industry's response to it. [1] • The number...
April 8, 2008
Good morning. This is Ted Lieu, and I represent parts of Los Angeles County, including Torrance, Redondo Beach, Marina del Rey and West Los Angeles, in the California Assembly. I want to thank the Center for Responsible Lending for inviting me to take part in the release of this critical research on broker pricing patterns. As many of you know, California is the epicenter of the foreclosure crisis. Last year, the Center of Responsible Lending estimated that nearly 500,000 California families would lose their homes to foreclosure due to the reckless lending practices that are so common in...
April 8, 2008
For more information: Kathleen Day at(202) 349-1871 or kathleen.day@responsiblelending.org; Sharon Reuss at (919) 313-8527 or sharon.reuss@responsiblelending.org; or Ginna Green at (510) 379-5513 or ginna.green@responsiblelending.org.
April 8, 2008
Today, we are reporting that mortgage brokers gave subprime borrowers overpriced home loans, even as they provided competitive rates to people with stronger credit. For brokered loans made between 2004 and 2006, we estimate that typical subprime borrowers will pay $5,222 more in interest over four years than if they had gotten the same loan directly from a lender. These results have serious implications for the estimated five million subprime borrowers who received loans from brokers in this period. They also highlight issues that Congress and financial regulators are facing as they...
April 8, 2008
Same borrower qualifications, same loan, but very different prices >> Read the report New research by the Center for Responsible Lending shows that subprime borrowers with brokered loans pay significantly more than their counterparts who deal directly with lenders. In the first four years of a mortgage, a typical subprime borrower who has gone through a broker pays $5,222 more than if he or she obtains the loan directly from a lender. "These findings confirm that mortgage brokers steer many of the most vulnerable borrowers to higher-priced loans than they deserve," said CRL...
April 8, 2008
Same borrower qualifications, same loan, but very different prices >> Read the report New research by the Center for Responsible Lending shows that subprime borrowers with brokered loans pay significantly more than their counterparts who deal directly with lenders. In the first four years of a mortgage, a typical subprime borrower who has gone through a broker pays $5,222 more than if he or she obtains the loan directly from a lender. "These findings confirm that mortgage brokers steer many of the most vulnerable borrowers to higher-priced loans than they deserve," said CRL...
April 3, 2008
Washington, DC – More than 15 national organizations (listed below) issued the following joint statement in response to the Foreclosure Prevention Act and its failure to include bankruptcy measures: "The Senate Housing package misses the single most significant step needed to help the 20,000 American families with subprime loans that are losing their homes each week through foreclosure: the bankruptcy amendment. We are left with a bill loaded with special considerations for mortgage companies and builders that does very little for homeowners who were sold predatory loans by...

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