Policy & Legislation
During the years that led up to the subprime mortgage crisis, Congress was notably passive in dealing with the proliferation of abuses that flourished in a reckless lending environment. The foreclosure crisis that triggered today’s economic problems underscores the need for sensible regulations and protections. Today there are many reforms being weighed and balanced in Washington and in the states. Here we help you keep abreast of proposed policies and their pros and cons.
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- Lenders cannot make loans in Massachusetts that will default without home value appreciation
September 22, 2008
CRL's amicus brief in support of the Massachusetts Attorney General in Commonwealth v. Fremont Investment & Loan. CRL, along with a number of other consumer groups, argues in favor of affirming the trial court's injunction of foreclosures by Fremont on loans with a set of characteristics (including "teaser rates" and prepayment penalties) that were unsustainable over the long-term without continued refinancings dependant on continued increases in property values in this appeal before the Massachusetts Supreme Judicial Court. The brief explains the dangers created by each of the problematic loan features identified by the trial court. The Supreme Judicial Court in December 2008 ruled in favor of the Attorney General in an opinion found at 897 N.E.2d 548.
- Judicial Modification of Loans Would Save 600,000 Homes: Purchase of Securities Will Save None
September 20, 2008
Simply owning securities gives the government no right greater than they currently hold to help borrowers stay in their homes.
- Federal Ownership of Troubled Securities Alone Will Not Stop Foreclosures that Drag Down the Economy
September 20, 2008
Allowing the Federal government to purchase illiquid mortgage-backed securities (MBS) will not work. Large-scale loan modifications —adjusting the terms of a loan to make it affordable—is the best solution to prevent more foreclosures
- HUD’s Proposed RESPA Rule
September 16, 2008
CRL applauds HUD for looking at RESPA reform
- Comments: Proposed changes to HMDA reporting requirements
August 28, 2008
CRL's comment on Fed's proposed changes to HMDA reporting requirements.
- The Mortgage Crisis Today: How Far Have We Come and Where Do We Need to Go?
August 4, 2008
Overview of subprime and alternative lending market with focus on California
- A Review of Mortgage Servicing Practices and Foreclosure Mitigation
July 25, 2008
CRL urges action be taken to prevent further escalation of foreclosure crisis.
- Foreclosure rescue scams in Virginia create mortgages under equitable principles (reply)
July 14, 2008
CRL's briefs on behalf of the appellants in Johnson v. Washington. CRL represents Virginia homeowners who signed a deed purporting to sell their house to an investor in a foreclosure rescue scam when they went to a mortgage broker to refinance their defaulted loan in this appeal to the U.S. Court of Appeals for the 4th Circuit. The district court held the mortgage rescue transaction neither created an equitable mortgage, in which case the federal Truth in Lending Act and state mortgage broker laws would apply, nor constituted fraud.
- Analysis of HR 6076
June 27, 2008
Explanation and endorsement of HR 6076: Home Retention and Economic Stabilization Act
- Comment: RESPA Proposed Rule to Simplify and Improve the Process of Obtaining Mortgages to Reduce Consumer Settlement Costs
June 12, 2008
Comments of the Center for Responsible Lending on RESPA Proposed Rule to Simplify and Improve the Process of Obtaining Mortgages to Reduce Consumer Settlement Costs