CRL, Credit Unions, CDFIs, on Supreme Court Decision in  Seila Law LLC v. CFPB

WASHINGTON, D.C. - Today, the U.S. Supreme Court released their decision in Seila Law LLC v. Consumer Financial Protection Bureau, where it found that the CFPB's leadership structure, which features a single head removable only for inefficiency, neglect, or malfeasance, is unconstitutional. In January, the Center for Responsible Lending and Cohen Milstein Sellers & Toll PLLC (Cohen Milstein) submitted an amicus brief to the United States Supreme Court in the case on behalf of their clients, community development financial institutions (CDFIs) Self-Help Credit Union, Hope Enterprise Corporation

New HMDA Data Shows Mortgage Market Continues to Exclude Black and Latino Borrowers

WASHINGTON, D.C.— The Federal Financial Institutions Examination Council (FFIEC) released its 2019 Home Mortgage Disclosure Act (HMDA) data this week, covering the vast majority of mortgages made in the United States in the past year. Like previous years, the data revealed that borrowers of color remain underserved in the conventional market. Despite a modest increase in the share of home-purchase loans made to Black and Latino borrowers in 2019, these shares remain well below the population share they represent. The HMDA data also shows that the majority of home purchase loans made to Black

Advocates Condemn FDIC Rule that Encourages Predatory High-Cost Loans through Rent-A-Bank Schemes

Call on Congress to Pass Federal 36% Interest Rate Cap Limit Washington, D.C. – Consumer advocates Center for Responsible Lending, National Consumer Law Center, and Americans for Financial Reform Education Fund criticized the Federal Deposit Insurance Corporation (FDIC) for today finalizing a rule that encourages online non-bank lenders to launder their loans through banks so the non-bank lenders can charge triple-digit interest rates in states where high rates are illegal. The OCC finalized a similar rule last month. The rules were strongly opposed by a bipartisan group of attorneys general

CFPB Announces Changes to QM rule

WASHINGTON, D.C. – This week, the Consumer Financial Protection Bureau (CFPB) released two Notices of Proposed Rulemaking (NPRMs). The proposals would extend the temporary Government-Sponsored Enterprises Patch (GSE Patch) and amend the definition of “qualified mortgage” (QM) by removing the debt-to-income limit and replacing it with a price-based approach. The QM rule was created under the ability to repay provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Center for Responsible Lending (CRL) President Mike Calhoun released the following statement: Black and

CRL To Discuss Impact, Fixes For Paycheck Protection Program Before House Small Business Committee

*** ADVISORY FOR WEDNESDAY, JUNE 17, 2020 AT APPROXIMATELY 1 P.M. ET/10 A.M. PT *** WASHINGTON, D.C. - On Wednesday, June 17, at approximately 1 p.m. ET/ 10 a.m. PT, Center for Responsible Lending (CRL) Director of Federal Advocacy and Senior Counsel Ashley Harrington will testify in a virtual hearing before the U.S. House of Representatives' Committee on Small Business for a hearing titled, “Paycheck Protection Program: Loan Forgiveness and Other Challenges.” In the hearing, Harrington will discuss the structural fixes needed to ensure that the Small Business Administration’s Paycheck

PPP Flexibility Act Headed to President’s Desk Brings Necessary but Insufficient Changes to Troubled Business Loan Program

Transparency and structural changes still needed to ensure funds reach the smallest small businesses and business owners of color WASHINGTON, D.C. – Last night, the U.S. Senate, by unanimous consent, approved the Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010). Since the bill already passed the House of Representatives, it now goes to the president, who is expected to sign it into law. H.R. 7010 makes important improvements to the Paycheck Protection Program (PPP), including extending the covered expense period from 8 to 24 weeks and pushing back the PPP processing deadline

New Overdraft Report Urges Congress, Regulators, Banks to Halt Burdensome Bank Fees That Threaten Economic Recovery 

Banks collected more than $11.68 billion in 2019 through abusive overdraft practices that drain consumers’ checking accounts Congress, Regulators, and Banks all have the responsibility and power to ease burden on consumers WASHINGTON, D.C. – A new report released today by the Center for Responsible Lending (CRL) finds that in 2019 banks collected more than $11.68 billion in overdraft-related fees through abusive practices that drain massive sums from consumers’ checking accounts. Now, in the midst of a global pandemic and unprecedented economic turmoil, CRL is calling on Congress to adopt

Statement On Recent Protests

WASHINGTON, D.C. - Center for Responsible Lending President Mike Calhoun released the following statement today on the recent protests that took place over the weekend: Communities across the country rightly expressed their raw, unfiltered emotions because of the complacency that has allowed racism and oppression to continue in the United States. The senseless killings of unarmed black men and women—like George Floyd, Ahmaud Arbery, Breonna Taylor, and so many others before them—by irrational, and often racist, law enforcement officers are both heart-shattering and enraging. These incidents

President Trump Vetoes Bipartisan Resolution to Prevent 2019 Harmful Student Debt Rule

WASHINGTON, D.C. – Today, President Donald Trump vetoed H.J. Res. 76, a resolution which would have invalidated the Department of Education’s 2019 harmful Borrower Defense (BD) Rule. The 2019 rule weakens accountability for predatory for-profit colleges and prevents defrauded students from accessing relief. Center for Responsible Lending Federal Advocacy Director and Senior Counsel Ashley Harrington released the following statement: Despite bipartisan Congressional support, and advocacy by several veterans groups, the Trump Administration has once again chosen to shield predatory for-profit

House’s PPP Flexibility Act Addresses Some Business Loan Program Issues, More Structural Fixes Needed

Coalition of civil rights and consumer organizations urge Senate to include provisions to strengthen PPP’s infrastructure WASHINGTON, D.C. - The U.S. House of Representatives recently passed H.R. 7010, the Paycheck Protection Program Flexibility Act. The bill makes two important improvements to the Paycheck Protection Program (PPP), including extending the covered expense period from 8 to 24 weeks and pushing back the PPP processing deadline from June 30 to December 31, 2020. The legislation did not include several key fixes that are critically important for ensuring that the smallest and most