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Press Releases

September 20, 2006
Michael Calhoun, president of the Center for Responsible Lending, urged policymakers to address high-risk "exploding" ARMs in the subprime market before subcommittees of the Senate Committee on Banking, Housing and Urban Affairs today. "Nontraditional loans in the subprime market are seriously eroding the traditional benefits of homeownership," said Mr. Calhoun. "By their very nature, they pose a high risk of losing valuable home equity or foreclosure." Hybrid ARMs and nontraditional mortgage products in the subprime market are structured to cause families to fail. Mortgage brokers and...
September 8, 2006
The Federal Reserve today released figures showing once again that African-Americans and Latinos pay more for mortgages than white borrowers. Data collected from lenders for 2005 show that a majority of loans (52%) to African-Americans and more than one in three loans (40%) to Latinos were higher-cost. White borrowers received a much lower portion of higher cost loans, only one in five, or 19%. Some lenders and their lobbyists will claim that these disparities occur because minorities pose higher financial risks and so get charged more for a loan. The Center for Responsible Lending,...
July 17, 2006
Martin Eakes, CEO of the Center for Community Self-Help, named Michael D. Calhoun president of the Center for Responsible Lending. Calhoun has lobbied and litigated for poor people and their issues, especially predatory lending, for more than 30 years. Calhoun, formerly general counsel, had been the center's lead lobbyist in Washington and state capitals for years. His acceptance of the post indicates that advancing CRL's issues in Congress and nationwide is becoming increasingly important to the organization, which also does research on predatory lending. Predatory lending occurs in...
May 31, 2006
African-Americans and Latinos, government figures show, get high-interest sub-prime mortgages far more often than whites. Now researchers at the Center for Responsible Lending find those disparities persist even when the borrowers have the same qualifications as whites. Lenders say they charge more because African-Americans and Latinos tend to have shakier credit histories, which makes lending to them riskier. But that explanation is simply wrong, the Center found in its groundbreaking new research. The most extensive study of its kind shows that even after controlling for...
May 31, 2006
African-Americans and Latinos, government figures show, get high-interest sub-prime mortgages far more often than whites. Now researchers at the Center for Responsible Lending find those disparities persist even when the borrowers have the same qualifications as whites. Lenders say they charge more because African-Americans and Latinos tend to have shakier credit histories, which makes lending to them riskier. But that explanation is simply wrong, the Center found in its groundbreaking new research. The most extensive study of its kind shows that even after controlling for...
March 14, 2006
Local and national groups opposing housing discrimination urged the county council of Montgomery County, Md. to support a fair lending ordinance and not reverse its commitment to fair housing for everyone. Mortgage lenders sued the county for passing an ordinance prohibiting lenders from discriminating. Their lawyers persuaded a judge to delay the new law, supposed to take effect last week, pending a hearing. Discrimination is already illegal under federal and state laws, and already covers the lenders who are complaining about the Montgomery County ordinance. So it is difficult to see...
February 23, 2006
Download the Report The Best Value in the Subprime Market: State Predatory Lending Reforms (PDF 432kb) A study by the Center for Responsible Lending proves that laws against predatory lending thwart abusive lenders while in many cases increasing availability of credit for people who need it most. "The Best Value in the Subprime Market: State Predatory Lending Reforms" is the most comprehensive study of its kind. Researchers examined more than 6 million subprime mortgages from 1998 through 2004, or three-quarters of all the loans in the subprime market during those years. States with...
February 23, 2006
Download the Report The Best Value in the Subprime Market: State Predatory Lending Reforms (PDF 432kb) A study by the Center for Responsible Lending proves that laws against predatory lending thwart abusive lenders while in many cases increasing availability of credit for people who need it most. "The Best Value in the Subprime Market: State Predatory Lending Reforms" is the most comprehensive study of its kind. Researchers examined more than 6 million subprime mortgages from 1998 through 2004, or three-quarters of all the loans in the subprime market during those years. States with...
February 13, 2006
Augusta, ME - Predatory lending practices cost Mainers at least $23 million a year, say Coastal Enterprises Inc. and the Center for Responsible Lending in the first comprehensive study of predatory lending in Maine. These predatory practices endanger the homes and financial security of some of Maine's most vulnerable citizens. Based on the findings of the report, approximately 1,000 families are affected each year by these practices. "Our findings are not about Maine banks and credit unions which serve our communities," said Ron Phillips, president of Coastal Enterprises. "Rather, it's...
January 23, 2006
The Center for Responsible Lending applauds a $325 million settlement between a team of state attorneys general and Ameriquest Mortgage Co. to end abusive lending practices. Today's agreement shows that states play a key role in fighting predatory lending, said Deborah Goldstein, executive vice president of the center, a non-profit research and advocacy group. "The states are quicker to identify new predatory lending abuses and protect borrowers from losing their homes," Ms. Goldstein said. "Here is a good example of this principle at work. "We congratulate the attorneys general who...

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