CRL letter to Members of House Financial Services Committee outlining support and opposition to various CFPA amendments on states' rights, credit-related insurance, and carve outs for credit unions and auto dealers.

UNC's Center for Community Capitalism finds that national banks increased subprime lending when they were allowed to ignore state laws (i.e., "preempt" state laws), and states with stronger lending laws have had fewer foreclosures.

CRL’s amicus reply brief in support of bankrupt homeowners in 18 cases appealed by Mortgage Electronic Registration Systems, Inc. (MERS), in which the Nevada bankruptcy court determined that loan owners must disclose their identity, rather than using MERS’ name, when seeking the bankruptcy court’s permission to foreclose on homeowners who have filed for bankruptcy. MERS is a company created by the mortgage industry to electronically track the ownership of loans, as a way of avoiding the need to report loan ownership changes in official local government records. The existence of MERS makes it difficult for homeowners to know who owns their loan, which can be essential information to borrowers seeking modifications or with legal claims about their loan. The brief argues that MERS, as opposed to the loan owners, lacks the standing and real-party-in-interest status necessary to seek a federal court’s permission to foreclose. It also argues that MERS did not submit sufficient proof in the cases on appeal to entitle it—or anybody else—to deprive homeowners of their fundamental right under bankruptcy laws to stop foreclosure proceedings.

CRL's views on the proposed Consumer Financial Protection Agency. CRL President Michael Calhoun testifed before the House Financial Services Committee on September 30, 2009, stressing the importance of an independent agency that also preserves the ability of states to take action to protect consumers.

A brief overview of how the Consumer Financial Protection Agency would ensure that banking is safe for all Americans.

CRL’s amicus brief in support of bankrupt homeowners in 18 cases appealed by Mortgage Electronic Registration Systems, Inc. (MERS), in which the Nevada bankruptcy court determined that loan owners must disclose their identity, rather than using MERS’ name, when seeking the bankruptcy court’s permission to foreclose on homeowners who have filed for bankruptcy. MERS is a company created by the mortgage industry to electronically track the ownership of loans, as a way of avoiding the need to report loan ownership changes in official local government records. The existence of MERS makes it difficult for homeowners to know who owns their loan, which can be essential information to borrowers seeking modifications or with legal claims about their loan. The brief argues that MERS, as opposed to the loan owners, lacks the standing and real-party-in-interest status necessary to seek a federal court’s permission to foreclose. It also argues that MERS did not submit sufficient proof in the cases on appeal to entitle it—or anybody else—to deprive homeowners of their fundamental right under bankruptcy laws to stop foreclosure proceedings.

Solutions exist. Here's a quick reference to CRL's top four policies for stopping the foreclosure epidemic.

A geographically broad and bipartisan letter sent August 17 letter to key committee chairs in the U.S. House and U.S. Senate by 24 State Attorneys General, signals a strong state of support for the proposed Consumer Finance Protection Agency (CFPA).

In a hearing on "Current Trends in Foreclosure and What More Can Be Done to Prevent Them," CRL's Keith Ernst urged Congress to take several actions to address the flood of foreclosures and fix the broken mortgage market: Create the Consumer Financial Protection Agency; pass or encourage sensible lending rules in the future; ensure that current prevention efforts are as effective as possible; and lift the ban that now prohibits home loan modifications through the courts.