Press Releases

Oakland, Calif.--Californians struggling to overcome heavy debt will have greater protections and greater success if a bill by State Sen. Majority Leader Ellen Corbett (D-San Leandro) becomes law. Debt settlement companies advertise prominently on radio and television that they will reduce debts for pennies on the dollar, aiming to attract consumers dealing with overwhelming debt loads. Yet they typically collect large sums of their clients' money up-front, have a track record of settling very little debt, and often leave clients worse off than they were before. "Many Californians are

Oakland, Calif.—California State Sen. Mark Leno (D-San Francisco) and Senate President pro Tem Darrell Steinberg (D-Sacramento) vowed at the end of last year's legislative session that they would not give up on trying to prevent wrongful foreclosures of California homeowners. Their 2010 bill, which would have put an end to banks' pursuing foreclosures while simultaneously considering loan modifications, passed the Senate but failed in the Assembly. This year's California Homeowner Protection Act (SB 729) retains the same major goal as last year's SB 1275: avoiding wrongful foreclosures by

Even as 50,000 new foreclosures start every week, the House Financial Services Committee votes tomorrow on four bills to dismantle programs aimed at helping homeowners. Industry figures show that more households than ever are in some stage of foreclosure, with over five million mortgage holders now at risk of losing their homes. Avoiding unnecessary foreclosures and encouraging loan modifications will be key to economic recovery, as the nation is sorely missing the jobs and growth provided by a healthy housing market. Some say the continuing stream of failed mortgages shows that foreclosure

Oakland, Calif.—According to a recent poll of registered San José voters, liquor stores and check-cashers are more popular than payday lenders, with payday lenders' unfavorable rating reaching 52 percent while liquor stores and check-cashers had unfavorable ratings of 34 and 46 percent, respectively. Payday lenders make small, short-term loans secured by a borrower's post-dated personal check that carry interest rates of 459 percent APR for a typical two-week period. The loans entrap Californians in a cycle of debt because most borrowers are unable to repay the loan in two weeks with enough

Washington, D.C. --- The latest figures from the Mortgage Bankers Association show that reported mortgage delinquency rates moved down slightly in fourth quarter 2010, but more than five million homeowners remain at risk of losing their home to foreclosure. The number of homeowners currently in some stage of the foreclosure process actually increased 5% from third quarter. Meanwhile, Hope Now data show that the number of completed loan modifications in 2010Q4 plummeted by 23% over the previous quarter. Only one loan modification is occurring for every 15 homeowners in need of assistance. The

New credit card rules mandated by the Credit CARD Act of 2009 have resulted in significantly greater price transparency for consumers, a new research report by the Center for Responsible Lending finds. The report, "Credit Card Clarity: CARD Act Reform Works," also finds that—contrary to industry claims—the price consumers pay for credit cards has remained stable and access to credit has not tightened beyond what would be expected from the economic downturn. [For the full report, go to http://qa.crl.w.lmdagency.net/research-publication/credit-card-clarity.] CARD Act reforms have helped reverse

Related: Wall Street, Not Fannie Mae and Freddie Mac, Led the Toxic Market While Fannie Mae and Freddie Mac need serious reform, we must get these reforms right. Among the Administration's several proposals, only one—the one that maintains a limited role for the GSEs—even has potential for ensuring all families have access to home loans and achieving stability in the housing market. Completely throwing out a mortgage finance system that worked well for decades carries enormous risks, including these: Loss of family wealth and less economic security. The American Dream of homeownership is alive

The Financial Crisis Inquiry report rejects the notion that the financial crisis was inevitable. Instead, based on extensive evidence and 19 days of public hearings, the report points squarely at preventable actions and inactions by the "captains of finance and the public stewards of our financial system." Aided by oversight that was weak and permissive, the reckless practices of Wall Street dragged the entire economy down an irresponsible path, though other roads could have been taken. The good news is that the financial reform bill passed by Congress last summer provides strong tools to

Washington, D.C.--- Proposed changes to home lending rules from the Federal Reserve Board not only exceed its authority, but could actually encourage predatory lending targeted at the elderly. In response to the flawed proposals, the Center for Responsible Lending, the National Consumer Law Center (on behalf of its low-income clients), the National Association of Consumer Advocates, the California Reinvestment Coalition, the National Fair Housing Alliance and others have urged the Federal Reserve Board to withdraw its proposed regulations under the Truth in Lending Act [Regulation Z; Docket No

The Department of Justice $2 million settlement with PrimeLending spotlights serious problems on loans insured by the Federal Housing Administration (FHA). The case found inconsistent and abusive pricing on loans to African-American borrowers, revealing that it's far too easy for lenders making government-backed loans to overcharge home buyers. (For the DOJ announcement, go to http://bit.ly/gINlMk.) The FHA insures mortgages that meet specific risk criteria, but the rules on how much lenders can charge remain loose. The result is that equally qualified borrowers have been charged significantly