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Press Releases

October 10, 2010
USA Today Op-Ed By Julia Gordon, CRL Senior Policy Counseljulia.gordon@responsiblelending.org 202-349-1878 For years, mortgage loan servicing companies have engaged in shoddy business practices, ranging from misapplied payments to evicting homeowners who have never missed a payment. Now employees of these companies have admitted to falsifying thousands upon thousands of affidavits used to toss families out of their homes. The fraudulent documents indicate a problem well beyond the "technical glitches" that the industry describes. If servicers had accurate records, there would be no...
October 7, 2010
National civil rights groups, including the Leadership Conference on Civil and Human Rights, the National Fair Housing Alliance, National Council of La Raza, the NAACP, and the Center for Responsible Lending are renewing their April 2007 call to institute an immediate national moratorium on foreclosures. Until lenders demonstrate that they are adhering to all existing laws, regulations, and contractual guidelines related to loss mitigation and foreclosure legal process, lenders in all 50 states should not move forward with any foreclosures. Across the country, lenders are announcing...
October 1, 2010
Five Maine residents filed a complaint today against GMAC Mortgage, LLC (GMAC) on behalf of themselves and a class of Maine homeowners, alleging that the company routinely and systematically files false certifications that it has a right to foreclose on Maine homeowners, and false affidavits when asking courts to enter foreclosure judgments. The homeowners complain that GMAC files these false documents knowing that the courts in Maine will rely on them in deciding whether foreclosures can go forward and in allowing GMAC to sell their homes. Depositions of GMAC employees revealed that...
August 26, 2010
One in seven homeowners with a mortgage is past due or in foreclosure, according to the Mortgage Bankers Association's latest report on home loan delinquencies. That's up from one in eight a year ago and one in 11 two years ago. Although there was a dip in the share of homes in foreclosure, the report shows that the foreclosure epidemic continues, with millions of homes still at risk. This data comes on the heels of a report issued this week by the State Foreclosure Prevention Working Group that shows over 60% of seriously delinquent borrowers are not getting any assistance at all from...
August 17, 2010
"For years, consumer advocates have been deeply troubled by 'yield-spread premiums (YSPs),' the routine payments to brokers and lenders that essentially function as kickbacks for overcharging on home loans. The Federal Reserve's final rules on YSPs, issued yesterday, mark a welcome milestone that will finally end this practice—saving money for home buyers and making it easier to shop for the best loan. The Dodd/Frank financial reform bill passed last month contains similar protections on yield-spread premiums that go slightly further than the Fed's final rules. As the reform bill is...
August 17, 2010
Latinos and African Americans in California have experienced significantly higher foreclosure rates than non-Hispanic borrowers in the state, according to first-of-its-kind research released today by the Center for Responsible Lending. As a result, these communities represent more than half of all foreclosures, with 48% of foreclosures on Latinos and 8% on African Americans. These borrowers were more likely to receive higher-cost subprime mortgages with loan terms that typically increased the risk of default, compared with safer loans made to similarly situated non-Hispanic white borrowers...
July 21, 2010
President Obama's signing of the financial reform bill today marks a watershed in efforts to restore common sense to lending and financial markets. Our nation now has a roadmap for ending the unfair and deceptive practices that have cost millions of families their financial security and nearly capsized the economy. To members of Congress who worked so diligently to craft this law—and to withstand big-money lobbying against reform—we offer our deepest gratitude. Their support for the Consumer Financial Protection Bureau and strong lending rules will help all Americans who...
June 18, 2010
The ongoing foreclosure crisis has slashed hundreds of billions of dollars in wealth from communities of color, a new CRL research report shows, as an estimated 17% of Latino homeowners and 11% of African-American homeowners have already lost their home to foreclosure or are now at imminent risk. The wealth drain is the result of direct losses from foreclosures and also the decline in neighboring property values each foreclosure brings. The report—"Foreclosures by Race and Ethnicity: The Demographics of a Crisis," http://qa.crl.w.lmdagency.net/research-publication/foreclosures-race-and-...
June 3, 2010
Legislation that would help prevent avoidable foreclosures and deter irresponsible lender and servicer behavior passed out of the California Senate today, 21-12. "Simple fairness dictates that no one should lose their home while they are in the middle of trying to save it," said Paul Leonard, director of the California office of the Center for Responsible Lending. SB 1275, authored by Sen. Mark Leno (D-San Francisco) and Senate President Pro Tem Darrell Steinberg (D-Sacramento) would prevent servicers from foreclosing on homeowners who have requested modifications until a decision has...
May 28, 2010
Thousands of troubled California homeowners, like Kathryn Winogura of Lafayette and Zachary Norris of Oakland should have their fingers crossed for foreclosure legislation being considered in Sacramento next week. SB 1275, the bill sponsored by Sens. Mark Leno (D-San Francisco) and Darrell Steinberg (D-Sacramento), would level the loan modification playing field and hold servicers accountable for their errors. The bill is up for consideration in the Senate Banking, Finance and Insurance (SBFI) Committee sometime next week, most likely Wednesday The bill has two major provisions:...

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