Skip to main content

Search form

Press Releases

July 31, 2012
Restoring the US housing market is critical to our nation's economic recovery. That is why we are disappointed with the Federal Housing Finance Agency's (FHFA) announcement today that it will not permit targeted forgiveness of loan principal balances for struggling homeowners. This decision means that principal reductions are not an option for Fannie Mae and Freddie Mac loans even when reducing principal balances would return more money to those entities than any other type of modification. This is a lost opportunity to stabilize housing markets and property values by giving more...
July 13, 2012
The recent Government Accountability Office (GAO) report on the Independent Foreclosure Review (IFR) process reveals serious flaws that threaten to undermine the program's success. The IFR is intended to compensate borrowers for mistakes their mortgage servicers made in the foreclosure process. The report critiques the public outreach that has been conducted for the IFR, under which federal banking regulators have ordered 15 major mortgage servicers to review loans in foreclosure in 2009 and 2010 in order to find any mistakes. The IFR has the potential to help as many as 4.3 million...
July 12, 2012
Today's Department of Justice fair lending settlement with Wells Fargo Bank is welcome news, and highlights the benefits of new mortgage rules to combat predatory lending. The DOJ settlement of $175 million settles charges that Wells Fargo steered about 4,000 African-American and Hispanic families into higher-cost subprime mortgages while white borrowers with similar qualifications received safer, cheaper prime loans. DOJ also found that about 30,000 people of color paid more for their mortgages in fees and rates because of their race or ethnicity. New and pending mortgage originator...
July 11, 2012
Gov. Jerry Brown signed into law the California Foreclosure Reduction Act today inLos Angeles. The bills, AB 278 and SB 900, are designed to reduce unnecessary foreclosures in the state and were critical pieces of Attorney General Kamala Harris' Homeowner Bill of Rights. "These common-sense protections have had an uphill battle to the governor's desk," said Paul Leonard, California Director of the Center for Responsible Lending. "But after three years of trying, allCaliforniahomeowners will now have meaningful protections to prevent wrongful foreclosures." AB 278 and SB 900 contain...
July 2, 2012
Both houses of the California Legislature today approved the Foreclosure Reduction Act, a bill designed to reduce unnecessary foreclosures in the state. The bill is the centerpiece legislation of Attorney General Kamala Harris' Homeowner Bill of Rights. "This is monumental," said CRL California Director Paul Leonard. "For the past three years, the legislature has said 'no' to making the foreclosure process fairer for consumers. Today, they finally said 'yes.'" AB 278 and SB 900 contain provisions that will end "dual track" in mortgage servicing, requiring that servicers provide loan...
June 27, 2012
Legislation Will Level the Playing Field for Borrowers Across California, and Ensure That All Borrowers Get Full and Fair Consideration for Loan Modifications Six weeks of negotiations between banks, the bipartisan legislative conference committee, the Attorney General and consumer groups have produced a Homeowner Bill of Rights that deserves to pass both floors of the Legislature and be signed by Gov. Jerry Brown as soon as possible. The Homeowner Bill of Rights will prevent unnecessary foreclosures without putting undue burden on banks by implementing the following key provisions...
June 27, 2012
A housing bill introduced in the Senate could more than double the number of homeowners who refinance under a federal mortgage program and also more than double their potential savings, according to an estimate by researchers at Columbia University. To be eligible, homeowners must have a mortgage backed by Fannie Mae or Freddie Mac and be current on the payments. Researchers at The Paul Milstein Center for Real Estate at Columbia Business School estimate that streamlining refinances would increase the total number of homeowners who refinance under the existing Home Affordable Refinance...
June 25, 2012
More than 80 percent of California homeowners who received modifications in 2010 stayed current and avoided re-default despite the continued recession, according to a new Center for Responsible Lending analysis. These new data indicate that the Homeowner Bill of Rights is critical for large numbers of borrowers, their communities and the overall California housing market. The legislation, which has undergone six weeks of intense negotiation with banks, legislators, the Attorney General and consumer groups, would ensure that borrowers in owner-occupied homes applying for loan modifications...
June 21, 2012
The remedies are deeply inadequate in fundamental ways. The money will too often be too little too late, particularly for borrowers who were wrongfully denied loan modifications. The federal bank regulators continue to withhold too many details from the public, when transparency would be to everyone's benefit. Further, the Sept. 31st deadline to apply for compensation for borrowers who believe they were wronged is too soon. It should be extended through year's end, especially since a large mailing was just sent out saying the deadline is July 31. The regulators did get one thing right:...
May 31, 2012
Californians need Attorney General Harris' Homeowner Bill of Rights to fix mortgage lending abuses and speed economic recovery. But lobbyists fighting it in Sacramento have now enlisted mortgage bankers from around the country to help them defeat it. (Read the e-mail sent by the Mortgage Action Alliance, the Mortgage Bankers Association's national e-advocacy division.) The MBA urged members nationwide to "Stop the Damaging Unintended Consequences of Sweeping California Legislation," and oppose common-sense protections of the Homeowner Bill of Rights, a legislative package modeled on the...

Pages