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Press Releases

April 19, 2005
WASHINGTON, D.C. – Reps. Brad Miller, Melvin L. Watt and Barney Frank will hold a press conference Tuesday on their anti-predatory mortgage-lending bill. The Prohibit Predatory Lending Act (HR 1182) strengthens protections against predatory lenders, who are booming as the market for sub-prime mortgages explodes. Predatory lenders cost American homeowners and homebuyers in the sub-prime market, where people with less-than-perfect credit records borrow, more than $9 billion a year. These borrowers who get cheated out of the hard-won equity in their homes are often minorities, rural...
March 23, 2005
WASHINGTON, D.C., -- Civil rights groups joined consumer organizations in opposing a bill in Congress that would gut protections against predatory lenders. That bill, introduced by Reps. Bob Ney of Ohio and Paul Kanjorski of Pennsylvania, would make it easier for unscrupulous lenders to rob the nation's most vulnerable families of their homes and savings. NAACP Chairman Julian Bond urged lawmakers to reject the bill and pass instead a bill by Reps. Brad Miller and Mel Watt of North Carolina and Barney Frank of Massachusetts that strengthens defenses against predators. "Representatives...
March 16, 2005
WASHINGTON, D.C. -- A new bill in Congress would demolish many of the protections states and the federal government have carefully erected against predatory lenders and would expose millions of homebuyers to the loss of their savings and even their homes. The bill by Congressmen Robert Ney of Ohio and Paul Kanjorski of Pennsylvania would preempt state laws proven effective at curbing abusive lending and replace them with a weak federal standard. The Center for Responsible Lending, a nonprofit, nonpartisan policy and research group, urges Congress to reject this bill in its current form,...
March 10, 2005
WASHINGTON, D.C. -- A bill by Rep. Brad Miller, Rep. Mel Watt and Rep. Barney Frank, the ranking Democrat on the House Finance Committee, would protect homeowners from predatory lenders far better than current federal law, says the Center for Responsible Lending. The bill is modeled on a North Carolina law that has reduced predatory loans and would eliminate current loopholes in federal law. The bill discourages lenders from charging exorbitant fees or prepayment penalties that keep borrowers from refinancing at a lower interest rate or strip wealth from savings; prohibits "flipping"...
January 13, 2005
Download the Reports Borrowers in Higher Minority Areas More Likely to Receive Prepayment Penalties on Subprime Loans (PDF 364kb) Prepayment Penalties Convey No Interest Rate Benefits on Subprime Mortgages (PDF 351kb) DURHAM, N.C. -- People with subprime home loans who live in minority neighborhoods face 35 percent greater odds of being saddled with prepayment penalties than borrowers living in predominantly white neighborhoods, according to new research from the Center for Responsible Lending (CRL). Also today, CRL reports findings -- in direct contradiction to subprime mortgage...
September 14, 2004
Some subprime loans are predatory, and an effective law that eliminates predatory loans will reduce the number of subprime originations accordingly. Showing a different growth rate than two other states without examining loan terms, as the MBA study itself acknowledges, fails to answer the real question of whether the NC law helps homeowners protect their homes from abusive lending while retaining access to credit. The only study that examines loan terms to determine whether the NC law reduced the frequency of predatory lending was conducted by the University of North Carolina. [1] This...
September 8, 2004
DURHAM, NC -- New research by the Center for Responsible Lending (CRL) finds that predatory mortgage lending is a significant problem in rural America that hinders borrowers from taking advantage of improving credit or interest rate declines. Perceived as an urban problem by many, certain abusive lending practices are more prevalent in rural areas than in cities. Rural borrowers are 20 percent more likely than their urban counterparts to receive a prepayment penalty that remains effective for five years or more on subprime mortgage loans. A prepayment penalty is a fee charged by a...
June 16, 2004
DURHAM, NC (June 16, 2004) -- Buying a home is the single largest purchase most Americans will make. Homeownership is also the primary way that families accumulate wealth and a symbol of financial success for many. June has been designated National Homeownership Month to celebrate this important achievement in the lives of American families and to encourage others to join their ranks. According to the 2000 U.S. Census, 66.2 percent of Americans are homeowners, a two percent increase since 1990 -- the largest increase in homeownership since the 1950s. This increase is due in large part to...
November 5, 2003
WASHINGTON, D.C. -- State predatory lending laws, including North Carolina's first-of-its-kind legislation targeting abusive home mortgage terms, are working to protect consumers while not drying up the availability of credit to low-income borrowers, according to testimony delivered to Congress today by Self-Help Credit Union Senior Vice President George Brown, who also is spokesperson of the Center for Responsible Lending (CRL). Brown also told those attending a joint hearing of the U.S. House Financial Services Subcommittee on Financial Institutions and Consumer Credit and the...
October 6, 2003
DURHAM, NC -- Siding with groups of state officials such as the Conference of State Banking Supervisors, National Association of Attorneys General, and National Governors Association, a diverse group of leading civil rights and consumer organizations called on the Office of the Comptroller of the Currency (OCC) today to withdraw its controversial proposal to preempt application of state anti-predatory lending laws to national banks and their subsidiaries. According to their comment letter, signed by organizations such as ACORN (Association of Community Organizations for Reform Now),...

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