Press Releases

New rules from the Consumer Financial Protection Bureau will benefit millions of Americans by fixing several key problems that have plagued mortgage servicing. The rules establish basic standards such as requiring a timely application of monthly mortgage payments and a prompt correction of errors. The rules also restrict servicers from forcing borrowers into high-cost homeowners' insurance policies—a common, needless and deceptive practice. The rules also will help families save their homes from foreclosure. Protections from "dual tracking"—where servicers simultaneously pursue foreclosure and

Joint Press Release with the North Carolina Justice Center After a campaign by consumer advocates and state leaders, a bank dropped its harmful payday lending program in North Carolina. Payday loans have been illegal in North Carolina for more than a decade, but that hasn't stopped all payday lending. For the past year, Regions Bank has used federal banking law to offer payday loans that are illegal for any other lender to make in our state. These loans carried, on average, an annual percentage rate (APR) of 365%. Now, after significant pressure from consumer advocates and the state Attorney

The Consumer Financial Protection Bureau's new rules generally strike a balanced, reasonable approach to mortgage lending and implement important consumer protections. The standard CFPB establishes for a safe, well-underwritten mortgage is appropriately broad enough to include the vast majority of creditworthy home owners, and it is clear enough for lenders and borrowers alike to understand. And the rules preserve legal protection for borrowers with the riskiest loans. The rules—required by the Dodd-Frank Act of 2010—address head-on a key cause of the mortgage meltdown and ensuing recession

Five United States Senators—Senators Richard Blumenthal, Sherrod Brown, Richard Durbin, Charles Schumer, and Tom Udall—have asked federal regulators http://rspnsb.li/UBdcq6 to stop banks from making predatory payday loans. The banks in question are making payday loans with triple-digit interest rates, essentially duplicating the storefront payday businesses that routinely trap lower-income borrowers in long-term harmful debt. In a letter dated January 2, the senators urged regulators to stop payday loans by banks immediately on the grounds that these loans pose safety and soundness risks. The

In the first report of its kind, the Center for Responsible Lending examines consumer lending markets across-the-board and finds that—despite major gains in regulatory reforms—predatory lending continues to undermine American households trying to rebuild their finances after the recession. View or download the report. The State of Lending in America and its Impact on U.S. Households ( State of Lending) paints a picture of working families struggling to manage debt while coping with stagnant incomes and a substantial decrease in wealth. The report covers major CRL findings in recent years and

The Center for Responsible Lending and the Financial Services Roundtable today asked Congress to extend the Mortgage Forgiveness Debt Relief Act, which is set to expire at year's end. "This tax law has bi-partisan support and is critical to helping homeowners and communities struggling with the ongoing foreclosure crisis," the two organizations said in joint letters to House and Senate leaders. "Furthermore, the housing market is beginning to show signs of a recovery, and expiration of this law would threaten the recovery." Read the full letters >> For more information: Kathleen Day at (202)

Statement of CRL President Mike Calhoun on today's report by HUD on the FHA's financial status FHA has played a critical role during the housing crisis and the economic downturn. It provided credit to families who otherwise would not have been able to buy homes. This has helped new home owners, but also helped stabilize neighborhoods and communities and boost the economic recovery overall. It is essential that FHA continue to fulfill this role, especially as the recovery continues. It is also essential that FHA operate on a financially sound basis. FHA has already instituted changes so that

Foreclosures across the United States have drained nearly $2 trillion in property value from surrounding households, more than half of it from African-American and Latino homeowners, a new study from the Center for Responsible Lending finds. The report, "Collateral Damage: The Spillover Costs of Foreclosures," updates CRL's research on the economic harm that homeowners suffer by living near foreclosed properties—the "spillover" cost. Also, for the first time, the research examines the impact in minority neighborhoods. Read the full report. The spillover cost of loans that entered foreclosure

Statement of CRL President Mike Calhoun about the complaint filed yesterday by the Residential Mortgage-backed Securities Working Group, a task force that was formed in January by the Justice Department: "The complaint filed against Bear Stearns, now owned by JPMorgan Chase, is a welcome step in an ongoing investigation of Wall Street investment banking activities leading up to the financial crisis. This is the first action taken by this federal task force to bring accountability and relief to homeowners and others who have suffered the devastating consequences of uprooted families, defrauded

The latest Mortgage Bankers Association (MBA) survey shows positive trends in the housing market, with delinquencies and foreclosures down from last year. However, the millions of foreclosures still ahead will continue to erode communities and slow economic recovery. The need for aggressive and fair loan modifications remains as strong as ever. In addition, policymakers will sabotage growth and recovery if they leave underwater families stuck in high interest rate loans. About one quarter of all households that hold a mortgage are now underwater. Refinances remain out of reach even for