CRL in the News

On Thursday morning, Commerce Secretary Wilbur Ross — a man whose extraordinarily shady financial history doesn’t get the attention it deserves — appeared on CNBC’s “Squawk Box” to talk about the government shutdown. He expressed bafflement at the idea of unpaid federal workers suffering financial hardship, wondering why they don’t just take out loans. “There really is not a good excuse why there really should be a liquidity crisis,” he said. “True, the people might have to pay a little bit of interest, but the idea that it’s paycheck or zero is not a really valid idea.” Told that some workers

Ms. Hering’s case highlights how a flavor of mortgage once panned for its role in the housing meltdown a decade ago is making a comeback. These loans, aimed at buyers with unusual circumstances such as those who can’t provide the standard proofs of income, are growing rapidly even as rising interest rates and higher home prices crimp demand for mortgages. Lenders issued $34 billion of these unconventional mortgages in the first three quarters of 2018, a 24% increase from the same period a year earlier, according to Inside Mortgage Finance, an industry research group. While that makes up less

As 800,000 federal employees brace for another missed paycheck this week, banks, cellphone companies and nonprofit organizations are stepping up to help workers hurt by the month-long government shutdown. Creditors from big banks to local credit unions and utility and telecom companies are offering forbearance, waiving late fees and providing short-term, no-interest loans for affected workers. For many, it’s the first time they have rolled out a nationwide plan for a government shutdown.

Taken a trip to the emergency room lately? Moved across country for a new job? If you're like millions of Americans, the unexpected medical costs or security deposit for your new pad blew a hole in your budget. That's the upshot of a new Bankrate survey that found six of 10 people in the U.S. lack the savings to handle an unforeseen $1,000 expense, highlighting just how close to the financial edge even those with a job often find themselves. "You have a gap with what people are making and what they can afford," said Scott Astrada, director of federal advocacy at the Center for Responsible

A new director who is likely to loosen the regulatory reins. A new House committee chair who favors stricter regulations. That’s the new reality facing the CFPB as Kathy Kraninger takes over as director and Rep. Maxine Waters takes the helm of the House Financial Services Committee.

This week, the estimated 800,000 government employees affected by the partial government shutdown are about to start missing their paychecks, and lenders are stepping in with offers to help — some good, some bad, and none automatic. Most of the biggest consumer banks are offering to waive fees and interest charges for some customers, but not all.

Over the summer, Democratic Sens. Cory Booker of New Jersey and Sherrod Brown of Ohio introduced legislation that would take a large bite out of the roughly $15 billion that banks collect annually from overdraft fees. Their bill would ban such charges on debit card purchases and ATM withdrawals. It would also prohibit banks from charging more than six overdraft fees each year to the same customer.

Rep. Maxine Waters (D-CA) has a long list of items on her agenda as the head of a House committee charged with overseeing the banking industry and economy. Whether it’s bringing in Wells Fargo representatives for questioning, finding out what Mick Mulvaney did at the Consumer Financial Protection Bureau, or creating a subcommittee on discrimination to make sure the playing field is level, she’ll have a lot of power from her new vantage point as chair of the House Financial Services Committee. “We will be doing all of the work that needs to be done,” Waters told me in a recent interview.

WASHINGTON — The past year brought hope that regulators are finally focused on about modernizing the decades-old Community Reinvestment Act. But translating that momentum into an actual reform plan in 2019 will not be easy. “These reforms, by no stretch of the imagination, are strengthening [CRA] or making it more efficient,” said Scott Astrada, director of federal advocacy at the Center for Responsible Lending.

December 24, 2018 By Scott Astrada Anita Monti wanted to get her grandchildren presents for Christmas. She couldn’t afford them, so she took out a payday loan from Advance America. The company promised a quick fix. Instead, the grandmother “went through hell” for several months as she was trapped in a cycle of debt. During this time, she had to get help from her church to make her rent payment. What was marketed as a small loan ended up costing Anita nearly $2,000. Anita’s story is hardly a fluke. Trapping customers in a debt spiral is central to payday lenders’ business model — as a single