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March 16, 2005
WASHINGTON, D.C. -- A new bill in Congress would demolish many of the protections states and the federal government have carefully erected against predatory lenders and would expose millions of homebuyers to the loss of their savings and even their homes. The bill by Congressmen Robert Ney of Ohio and Paul Kanjorski of Pennsylvania would preempt state laws proven effective at curbing abusive lending and replace them with a weak federal standard. The Center for Responsible Lending, a nonprofit, nonpartisan policy and research group, urges Congress to reject this bill in its current form,...
March 10, 2005
WASHINGTON, D.C. -- A bill by Rep. Brad Miller, Rep. Mel Watt and Rep. Barney Frank, the ranking Democrat on the House Finance Committee, would protect homeowners from predatory lenders far better than current federal law, says the Center for Responsible Lending. The bill is modeled on a North Carolina law that has reduced predatory loans and would eliminate current loopholes in federal law. The bill discourages lenders from charging exorbitant fees or prepayment penalties that keep borrowers from refinancing at a lower interest rate or strip wealth from savings; prohibits "flipping"...
January 13, 2005
Download the Reports Borrowers in Higher Minority Areas More Likely to Receive Prepayment Penalties on Subprime Loans (PDF 364kb) Prepayment Penalties Convey No Interest Rate Benefits on Subprime Mortgages (PDF 351kb) DURHAM, N.C. -- People with subprime home loans who live in minority neighborhoods face 35 percent greater odds of being saddled with prepayment penalties than borrowers living in predominantly white neighborhoods, according to new research from the Center for Responsible Lending (CRL). Also today, CRL reports findings -- in direct contradiction to subprime mortgage...
September 14, 2004
Some subprime loans are predatory, and an effective law that eliminates predatory loans will reduce the number of subprime originations accordingly. Showing a different growth rate than two other states without examining loan terms, as the MBA study itself acknowledges, fails to answer the real question of whether the NC law helps homeowners protect their homes from abusive lending while retaining access to credit. The only study that examines loan terms to determine whether the NC law reduced the frequency of predatory lending was conducted by the University of North Carolina. [1] This...
September 8, 2004
DURHAM, NC -- New research by the Center for Responsible Lending (CRL) finds that predatory mortgage lending is a significant problem in rural America that hinders borrowers from taking advantage of improving credit or interest rate declines. Perceived as an urban problem by many, certain abusive lending practices are more prevalent in rural areas than in cities. Rural borrowers are 20 percent more likely than their urban counterparts to receive a prepayment penalty that remains effective for five years or more on subprime mortgage loans. A prepayment penalty is a fee charged by a...
June 16, 2004
DURHAM, NC (June 16, 2004) -- Buying a home is the single largest purchase most Americans will make. Homeownership is also the primary way that families accumulate wealth and a symbol of financial success for many. June has been designated National Homeownership Month to celebrate this important achievement in the lives of American families and to encourage others to join their ranks. According to the 2000 U.S. Census, 66.2 percent of Americans are homeowners, a two percent increase since 1990 -- the largest increase in homeownership since the 1950s. This increase is due in large part to...
November 5, 2003
WASHINGTON, D.C. -- State predatory lending laws, including North Carolina's first-of-its-kind legislation targeting abusive home mortgage terms, are working to protect consumers while not drying up the availability of credit to low-income borrowers, according to testimony delivered to Congress today by Self-Help Credit Union Senior Vice President George Brown, who also is spokesperson of the Center for Responsible Lending (CRL). Brown also told those attending a joint hearing of the U.S. House Financial Services Subcommittee on Financial Institutions and Consumer Credit and the...
October 6, 2003
DURHAM, NC -- Siding with groups of state officials such as the Conference of State Banking Supervisors, National Association of Attorneys General, and National Governors Association, a diverse group of leading civil rights and consumer organizations called on the Office of the Comptroller of the Currency (OCC) today to withdraw its controversial proposal to preempt application of state anti-predatory lending laws to national banks and their subsidiaries. According to their comment letter, signed by organizations such as ACORN (Association of Community Organizations for Reform Now),...
June 25, 2003
Listen to UNC study telenews event (RealAudio)Download the original 2003 report (PDF) CHAPEL HILL, NC -- The nation's first anti-predatory lending law -- the North Carolina statewide measure that took effect nearly three years ago on July 1, 2000 -- has significantly reduced harmful refinance loans containing abusive terms while not limiting access to subprime credit for homebuyers and low-credit score borrowers, according to a report by the Center for Community Capitalism (CCC) at the University of North Carolina (UNC). The UNC report revealed that loans in North Carolina...
August 13, 2002
Download the full report (PDF) DURHAM, N.C. -- North Carolina's 1999 landmark anti-predatory lending law, the first of its kind in the country, saved consumers at least $100 million in predatory lending costs in its first year without drying up the availability of subprime credit for low-income borrowers in the state, according to a new study released today by the nonprofit Center for Responsible Lending. Based on review of over 28 million home loans in all 50 states between 1998-2000 reported to federal regulators under the Home Mortgage Disclosure Act (HMDA), the study found that...

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