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Press Releases

April 2, 2010
The Center for Responsible Lending commends the U.S. Treasury Department for making "Hardest Hit Funds" available to housing finance agencies in five additional states: Ohio, North Carolina, South Carolina, Oregon, and Rhode Island. This follows a similar action in February to provide funding to California, Florida, Arizona, Michigan, and Nevada. This second round of state funding comes on the heels of the Administration's release of new tools to encourage more effective foreclosure prevention and unemployment assistance through the federal Home Affordable Modification Program (HAMP)....
March 26, 2010
"We welcome the Administration's stronger actions to stabilize the housing market, particularly doing more to lower loan balances on homes worth less than the mortgage. Foreclosures dragged us into the recession, and until we stop them, the economy will not recover and most homeowners will watch their hard-earned home equity drain away. Since 2007, we have had 6.6 million foreclosures filed across the nation, and by 2012 that number may climb as high as 13 million. The result is lower home values for everyone. That means most families have less equity to help pay for things like college...
March 25, 2010
"Bank of America's (BofA) new program to reduce loan balances for a defined group of distressed homeowners highlights our nation's very serious foreclosure situation. Today, nearly 1 in 4 homeowners is struggling to stay in a home that's worth less than their mortgage. BofA's initiative responds to a widelyacknowledged reality: reducing a loan's principal balance is a crucial tool for stopping foreclosures and stabilizing the housing market. We urge BofA to implement their principal reduction program quickly and comprehensively. This initiative is a very positive step, but more is needed...
March 23, 2010
"Yesterday's vote by the Senate Banking Committee to move forward with financial reform sends an important message that Congress must change the rules so that consumers are protected from unfair practices, our economy is protected from the damage of bad lending, and taxpayers won't have to pay for another Wall Street bailout. We are encouraged by the bipartisan collaboration between Chairman Dodd and Ranking member Shelby, and the Committee's efforts to hold Wall Street accountable in spite of an allout assault by industry lobbyists to block needed financial reforms. We support the...
March 15, 2010
CRL commends Chairman Dodd in crafting a financial reform bill that addresses the deceptive lending practices and regulatory failures that have caused millions of families to lose their homes, decreased access to credit for small business owners and cost state and local governments billions in lost revenue. To effectively remedy the lapses that wrecked our economy and resulted in the largest bailout in U.S. history, any final reform package must include a strong consumer financial protection agency that: · is independent from banks' veto power over consumer protections;...
March 5, 2010
Washington, D.C.—March 5, 2010— The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009, which took effect February 22, 2010, requires new disclosures on monthly credit card statements. The Financial Services Roundtable and the Center for Responsible Lending have teamed up to explain a few of these new disclosures, which are intended to make the cost of credit clearer to American consumers. The Disclosures WILL: ? Show you how long it will take to pay off your entire balance if you pay only the minimum payment each month and make no additional...
February 24, 2010
A key federal regulator for years has let national banks engage in lending practices that the regulator itself admits harm consumers and lenders, according to two new reports from the Center for Responsible Lending. (For the full reports go to: http://qa.crl.w.lmdagency.net/research-publication/mainstream-banks-making-payday-loans and http://www.responsiblelending.org/research-publication/national-bank-regulator-enabled-overdraft-abuses) The reports focus on two of many areas in which the regulator—the Office of the Comptroller of the Currency, or OCC—has fallen down on the job: payday...
February 19, 2010
The Mortgage Bankers Association (MBA) reported today that serious mortgage delinquencies—those at least 90 days past due or in foreclosure—remained at record levels in the fourth quarter of 2009. These latest statistics show that one in 10 borrowers is seriously delinquent on their mortgage, up from one in 16 borrowers a year ago and one in 33 two years ago. The Treasury Department this week issued figures showing that under the Home Affordable Modification Program the number of permanent loan modifications has increased to 116,000 total. Every additional homeowner who is...
January 28, 2010
Last night the President highlighted the need for jobs and health care reform for middle-class families, but Americans also need relief in the housing market and financial reform. First, we need stronger measures to stop preventable foreclosures. The financial crisis started in the housing market, and foreclosures continue to drag down the entire economy. Banks should be required to take reasonable steps to help families stay in their homes.Second, we urge the President and Congress to create a strong, independent watchdog over the big banks to make sure they don't cause another crisis and...
December 24, 2009
As the year ends with a spotlight on pending health and financial reforms in Congress, the Federal Reserve closed its comment period for mortgage rules that could save families billions of dollars. In a detailed comment letter, the Center for Responsible Lending recommends that the Federal Reserve Board strengthen a proposal to ban routine kickbacks for steering borrowers into unnecessarily risky or expensive home loans. If finalized as proposed, the ban on kickbacks (often called "yield-spread premiums") would apply to mortgage brokers, loan officers, and any party that originates mortgages...

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