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Press Releases

June 23, 2011
A diverse coalition of 44 consumer organizations, civil rights groups, lenders, real estate professionals and insurers joined with Members of Congress today urging regulators to make important changes to proposed mortgage lending regulations. The Coalition for Sensible Housing Policy released a joint white paper detailing how the proposed risk retention regulation, and the failure to properly define exemptions for Qualified Residential Mortgages (QRM), would significantly harm creditworthy borrowers while frustrating the nation's fragile housing recovery. The proposed QRM definition is...
June 2, 2011
Kenneth W. Edwards, Policy Counsel for the Center for Responsible Lending, presented the following remarks at a press briefing held to discuss the impact of the proposed Qualified Residential Mortgage (QRM) rule on consumers. Other groups participating in the conference were the Mortgage Bankers Association, Consumer Federation of America, the National Community Reinvestment Coalition, and the National Housing Conference. Good morning, I'm Ken Edwards, Policy Counsel at the Center for Responsible Lending, a nonprofit, nonpartisan research and policy organization dedicated to protecting...
May 27, 2011
The latest National Delinquency Survey issued by the Mortgage Bankers Association for the first quarter shows late mortgage payments and foreclosure starts have been dropping since the end of 2009. However, when you view the bigger picture, the housing market remains shaky, with millions of homeowners still at risk of losing their home. One reason for recent improvements is that foreclosures have been delayed, not stopped, since many lenders have slowed action on delinquencies because of legal problems. As shown in this "Homes at Risk" chart, the longer view of mortgage performance reveals...
April 28, 2011
This week in Sacramento, the banking committees of both houses considered two bills designed to mitigate the effects of California's foreclosure crisis, and both failed in hearing rooms packed with supporters. Both bills, however, will be re-heard next week. Even in light of tremendous involvement from constituents, consumer advocates, labor and grassroots organizations—and on the heels of robo-signing scandals that have caused thousands of wrongful foreclosures—legislators continue to oppose fair and simple legislation that would help Californians and the economy. "...
April 14, 2011
The following statement was issued by the Center for Responsible Lending, the Community Mortgage Banking Project, the Mortgage Bankers Association, the Mortgage Insurance Companies of America, the National Association of Home Builders and the National Association of Realtors in advance of the April 14th House Subcommittee on Capital Markets and Government Sponsored Enterprises hearing on the Qualified Residential Mortgage: "In the midst of a very fragile housing recovery, the government is throwing a devastating, unnecessary and very expensive wrench into the American dream. First time...
April 6, 2011
National consumer, civil rights, and labor groups ask bank regulators to withdraw the proposed consent orders issued to the nation's mortgage servicers and to work with the state Attorneys General and United States Department of Justice to obtain a joint settlement that addresses illegal servicing practices in a meaningful manner. The draft consent orders that have been released to the press do not hold servicers accountable for illegal practices and do not stop avoidable foreclosures. Read the letter. For more information: Kathleen Day at (202) 349-1871 or kathleen.day@responsiblelending....
April 1, 2011
Today marks the end of a long and notorious era in lending history, as new Federal Reserve rules take effect to stop mortgage kickbacks. For years, mortgage brokers and loan officers could charge different borrowers different prices for mortgages, even when borrowers had the same qualifications. By steering some customers into unnecessarily riskier and more expensive loans, mortgage brokers often pocketed thousands of dollars in extra pay. CRL research confirms that borrowers typically have paid more for brokered loans, especially on subprime mortgages. Almost 75% of all subprime mortgages...
March 23, 2011
New research by the Center for Responsible Lending finds that banks and other loan servicers often foreclose when investors have more to gain from a loan modification. The study—"Fix or Evict? Loan Modifications Return More Value than Foreclosures"—also finds that the industry's poor track record on loan modifications can't be blamed on homeowners who re-default. The research involved running more than 1,500 simulations of the test used by loan servicers to determine whether to modify distressed mortgages or foreclose. CRL found that even with hypothetical re-default rates as high as 79%—...
March 18, 2011
REALTORS®, Homebuilders, consumer groups urge federal regulators to avoid arbitrarily high mortgage down payments, which would hurt the economy by unfairly and unnecessarily closing the door to home ownership for many middle-class families.http://qa.crl.w.lmdagency.net/research-publication/joint-letter-regulators-1 For more information: Kathleen Day at (202) 349-1871 or kathleen.day@responsiblelending.org; Ginna Green at (510) 379-5513 or ginna.green@responsiblelending.org; or Charlene Crowell at (919) 313-8523 or charlene.crowell@responsiblelending.org.
March 11, 2011
Responding to widespread evidence of improper accounting, unwarranted fees, false documentation, and arbitrary foreclosure decisions, the 50 state Attorneys General are crafting a long-overdue plan to hold the mortgage servicing industry accountable. The plan would address accusations that banks and servicers have engaged in illegal and negligent servicing practices that have been a continued drag on the U.S. housing market and economy. "When unnecessary foreclosures flood the market, taxpayers end up picking up the tab," said Mike Calhoun, president of CRL. "Loan servicers have...

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