Skip to main content

Search form

Press Releases

December 19, 2006
Washington, DC – December 19, 2006 – A new Center for Responsible Lending (CRL) study reveals that 2.2 million American households will lose their homes and as much as $164 billion due to foreclosures in the subprime mortgage market. Titled, "Losing Ground: Foreclosures in the Subprime Market and Their Cost to Homeowners," the CRL study is the first comprehensive, nationwide review of millions of subprime mortgages originated from 1998 through the third quarter of 2006. CRL's research suggests that risky lending practices have triggered the worst foreclosure crisis in the...
September 29, 2006
Federal financial regulators took a step toward making the mortgage market safer for borrowers today, although there is still much more they can do. Alarmed by a huge increase in new types of mortgages with monthly payments that can make huge leaps, causing "payment shock" to families, regulators will now require lenders to consider whether a borrower can afford these types of home loans. That means fewer homeowners in the future will wind up losing their homes to the banks through foreclosure. The securities business already requires stockbrokers to consider whether investors can...
September 29, 2006
The Center for Responsible Lending commends federal regulators who said today they would start requiring lenders to consider whether a borrower can repay when they make certain kinds of home loans. But the regulators missed the boat in helping all the consumers at risk from mortgages that could blow up on them. Lenders have sold billions of dollars of complicated, difficult-to-understand adjustable-rate option mortgages to homebuyers in the last few years without regard to their ability to repay. As the banks pushed more people into buying houses they couldn't afford, the housing...
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...

Pages