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Press Releases

September 29, 2016
New Law Helps Prevent Unnecessary Foreclosures Today, the Center for Responsible Lending (CRL) applauded California Governor Edmund G. Brown Jr. for signing into law SB 1150, the Homeowner Survivor Bill of Rights, a bill to protect widowed spouses and other heirs from unnecessary foreclosures. Through the legislation, when the sole borrower listed on a mortgage passes away, it entitles widows, widowers, domestic partners, heirs, siblings, and other survivors to information and communication from the mortgage servicer, and it provides them the right to seek a loan assumption and...
August 2, 2016
CRL research finds low lending levels perpetuate racial wealth gaps and segregation. Mortgage lending in the nation's most populous state continues to lock out many of California's consumers of color, finds the Center for Responsible Lending (CRL). A new analysis of first-lien, owner-occupied home purchase mortgages made from 2012-2014, reveal a lack of access to conventional mortgages for many Latino and African-American consumers. These troubling lending patterns perpetuate racial wealth gaps and housing segregation. "These post-crisis mortgage lending trends in California help to...
June 30, 2016
Today the U.S. Department of Housing and Urban Development (HUD) announced changes to the Federal Housing Administration's Distressed Asset Stabilization Program that will help borrowers stay in their homes and support neighborhood recovery. Under the program, HUD will require third party buyers of FHA's non-performing loans to include principal reduction as part of their loan modification programs. This change builds on the Federal Housing Finance Agency's recent efforts in this area. Furthermore, HUD will create more favorable pricing for nonprofit organizations in the loan auctions....
April 14, 2016
The Federal Housing Finance Agency (FHFA) announced today a new loan modification program that will help borrowers stay in their homes. Under the new program, loan modifications will be available to as many as 30,000 qualified underwater borrowers facing financial hardship with loans now held by Fannie Mae or Freddie Mac. Eligibility also requires that the mortgages have an unpaid principal balance of not more than $250,000 and delinquency of 90 days or longer as of March 1 of this year. Homes must be owner-occupied. Additionally, FHFA will require third party buyers of Fannie and Freddie’...
April 5, 2016
Today the U.S. Senate Committee on Banking, Housing and Urban Affairs convened a hearing to assess the effects of Consumer Finance Regulation. Mike Calhoun, President of the Center for Responsible Lending (CRL) offered comments for the committee's record and issued the following statement. In a display of legislative wisdom, Congress created the Consumer Financial Protection Bureau (CFPB) with its enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The two were necessary remedies to heal the financial wounds wrought by 8.2 million families who lost their homes to...
March 15, 2016
Today, the Federal Housing Administration (FHA) issued new rules to update the certification process for loans backed by the agency. All lenders making FHA-backed loans must certify that each loan has complied with the appropriate rules that serve to protect both consumers and taxpayers. Lenders who violate the rules could face the liability of having to forfeit FHA insurance and buy back any loans they sold under false representations and pay triple damages. Lenders must also get certified to be eligible to offer FHA backed loans. Rules finalized today are for the individual loan...
November 20, 2015
Yesterday, the U.S. House of Representatives passed H.R. 1210. The bill would exempt the nation’s largest banks from rules put in place in response to the economic crisis. Specifically, the bill would give legal protections to any bank that holds any mortgage loan in its portfolio. The bank would receive the legal protections even if it ignored certain best practice underwriting standards and charged the high fees and high interest rates associated with the predatory lending in the lead up to the 2008 financial crisis. In response to the vote, CRL president Mike Calhoun said:...
November 13, 2015
A key mortgage lending reform – which would be rolled back by a bill coming up for a vote in the House of Representatives next week – commands the support of an overwhelming majority of voters, according to a poll conducted this summer by Lake Research on behalf of Americans for Financial Reform and the Center for Responsible Lending. New regulations, developed in response to the reckless and deceptive lending practices that fueled the financial crisis of 2008-09, require mortgage lenders to verify a borrower’s ability to repay before making a loan. The “Portfolio Lending and Mortgage...
September 22, 2015
Yesterday, the Consumer Financial Protection Bureau finalized changes to its Qualified Mortgage (QM) rule. The changes, which raise the number of loans a small creditor can re-sell and expand the number of banks that can qualify as a "rural bank," are a response to feedback from lenders. CRL Policy Counsel Yana Miles issued the following statement: The CFPB's Qualified Mortgage rule changes show a continuing openness to respond to the concerns of small banks and credit unions. These rules make it easier for community lenders to make certain loans. The changes need to be carefully...
September 22, 2015
Despite a number of industry predictions, new data from the Home Mortgage Disclosure Act (HMDA) report today revealed that Dodd-Frank's mortgage protections and the Consumer Financial Protection Bureau's related new mortgage regulations did not produce a decrease in mortgage accessibility for homebuyers. The data also show that borrowers of color and families with low-to-moderate incomes continue to be underserved in the mortgage market, especially by lenders who sell loans to Fannie Mae and Freddie Mac. For these borrowers, access to affordable mortgages is very limited. In addition,...

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