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Press Releases

September 12, 2007
Today the Federal Reserve Board issued a bulletin with its preliminary report on 2006 data reported under the Home Mortgage Disclosure Act (HMDA). We have not yet conducted a full analysis of the Board's report, but an initial review finds that, once again, African American and Latino families receive a disproportionate share of higher-cost, subprime home loans. "Higher-cost" loans have propelled the current foreclosure crisis, which has revealed that lenders have made subprime loans far too often with reckless disregard for affordability, while packing these loans with exploding...
September 6, 2007
The 2nd Quarter National Delinquency Survey, released today by the Mortgage Bankers Association (MBA), shows that mortgage loans entering foreclosure have increased in 47 states since this time last year. On average, the increases were 50% higher. Only four states-- North Dakota, South Dakota, Utah and Wyoming—did not experience increases in new foreclosures. Less than two percent of the American population lives in those states. When releasing the survey today, the MBA downplayed new foreclosures by focusing only on changes between the last two quarters. "Any minor changes from one...
August 21, 2007
A coalition of California consumer organizations demanded stronger, swifter action on the part of the California legislature in response to the subprime mortgage crisis at a press conference in Sacramento today as well as in testimony before the Senate Banking Committee. The organizations, including California ACORN, the California Reinvestment Coalition (CRC), the Center for Responsible Lending (CRL), Consumer Federation of California (CFC) and Consumers Union recommended a number of policy changes that would both assist current borrowers in crisis and protect future subprime borrowers...
August 16, 2007
Durham NC -- As the disastrous consequences of reckless subprime lending continue to mount, North Carolina lawmakers are standing up for homeowners by making it tougher to offer abusive home loans. Earlier this month, the North Carolina Home Loan Protection Act (HB 1817) passed the State Senate 33-15 and the State House 113-0. Today Governor Mike Easley, a strong supporter of the bill, held a signing ceremony to usher in the new law, which offers stronger protections against dangerous subprime mortgages. The new law directly addresses the current subprime crisis, weeding out questionable...
July 24, 2007
The second quarter of 2007 featured California's highest foreclosure losses in nearly 20 years, according to DataQuick, the real estate information service based in La Jolla, Calif. Trustees Deeds recorded, which reflect actual home loss due to foreclosure, totaled 17,408 in the second quarter—the highest recorded number of home losses due to foreclosure since DataQuick began collecting data in 1988. "There can be no doubt that California is in the midst of a foreclosure crisis," said Paul Leonard, director of the California office of the Center for Responsible Lending (CRL). "...
June 29, 2007
Today federal financial regulators issued a key statement on subprime mortgage lending that applies to banks, subsidiaries and affiliates of banks, and credit unions. The statement requires these federally-regulated entities to take common-sense precautions before approving subprime home loans. This action by regulators represents an important first step toward bringing responsibility and integrity to the subprime market. The statement encourages better lending practices that will benefit homeowners in several ways. Notably, the guidance discourages lenders from assessing a borrower's...
June 29, 2007
The California legislature's subprime lending bill, SB 385 sponsored by Sen. Michael Machado (D-Linden) fails to protect consumers from dangers in the subprime market, the Center for Responsible Lending (CRL) said today. The legislation merely would require California's regulatory agencies to adopt federal guidelines covering certain "nontraditional" mortgage products that the same regulators have already published for comment and plan to finalize later this summer. The bill and the regulations do not cover the subprime products that have been the largest source of defaults and...
June 21, 2007
Foreclosures, particularly on subprime home loans, continue to rise. The Center for Responsible Lending projects that subprime mortgages made in recent years will ultimately result in the loss of a home for 2.2 million families. Yet, although the sharp upward trend in foreclosures is undeniable, some in the lending industry are criticizing information provided by one data-aggregating firm, RealtyTrac, to suggest that foreclosure concerns have been overblown. Unfortunately, nothing could be further from the truth. Recent reports from business analysts, investment banks and even mortgage...
May 22, 2007
We're glad subprime lenders have recognized that their industry needs to be cleaned up with responsible lending practices. Their statement comes in the wake of a reckless lending spree that, for the most part, was entirely legal under current law. The consequence has been a massive loss in homeownership that is setting millions of hard-working families back, and causing economic hardship in hundreds of communities across the country. The Center for Responsible Lending estimates that over 2.2 million families have lost or will lose their home in the subprime market. We agree with the...
April 12, 2007
I'm Eric Stein, chief operating officer of Self-Help, a non-profit community development lender, and senior vice president of the Center for Responsible Lending. Thank you for having me here today to talk about bankruptcy solutions that could help prevent the massive home losses occurring today. As a result of loans that never should have been made, 2.2 million families have already lost or will lose their homes and billions of dollars in wealth. These losses will hurt everyone, not just the families who lose their homes. For example, everyone with a $150,000 house who lives on a block...

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