Today, as the President-elect announces his economic team for the new Administration, the Center for Responsible Lending highlights the urgent need to stop the epidemic of foreclosures and restore a lending environment where ordinary Americans have access to sustainable loans without fearing financial ruin.

"We commend the next Administration for assembling a talented and experienced team to address the economic crisis," said Mike Calhoun, president of the Center for Responsible Lending. "We believe this team understands the imperative to curb the losses to financial institutions and the downward spiral in housing prices by stopping foreclosures. Keeping families in their homes is the only path to a real recovery nationwide."

CRL urges the new Administration to keep these broad policy goals at the top of their agenda:

  • Rein in the foreclosure epidemic. To make economic recovery possible, stop the foreclosures that continue to depress housing values and weaken the entire economy. Voluntary measures simply aren't working; we must take stronger steps that will result in large-scale modifications of bad mortgages.
  • Focus on the financial health of ordinary Americans. Protect Americans from all forms of high-cost lending that trap families in a cycle of debt, especially those who are already financially distressed. To date, government efforts to strengthen the economy have focused on relief for corporations, but the spending of ordinary Americans drives 70% of the economy.

For more information: Chris Kukla at (919) 313-8520 or chris.kukla@responsiblelending.org; or Ginna Green at (510) 379-5513 or ginna.green@responsiblelending.org.

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