Press Releases

Statement by Mike Calhoun, president of CRL, on credit card legislation proposed today by Joint Economic Committee Chairwoman Carolyn Maloney and House Financial Services Committee Chairman Barney Frank "Hard-working Americans who use credit cards to help pay bills, buy groceries, and make ends meet need relief sooner rather than later from the industry's destructive tricks and traps, especially during hard times like these. We commend Chairwoman Maloney and Chairman Frank for proposing that the consumer protections in the recently passed Credit CARD Act be fully implemented December 1, 2009

"We're pleased Chairman Frank remains dedicated to the creation of an agency focused on ensuring that consumer financial markets work fairly. Moving forward, we must ensure that the agency isn't dominated by the regulatory agencies that helped cause the current crisis. We must ensure it has oversight over the financial products that are critical in the daily lives of millions of Americans. And we must ensure that the 50 states can address problems in their own back yards, rather than having to wait for Washington. We look forward to working with Chairman Frank and the committee's members." For

Foreclosure trends in North Carolina are dramatic and disturbing. Over recent years, foreclosure filings have tripled, with almost 40,000 foreclosure filings in the first eight months of this year. In addition, at the end of the second quarter 2009, the MBA National Delinquency Survey states that one out of ten NC borrowers are behind on their home loan. For the families that lose their home, some of whom will never own a home again, this is devastating. It is also devastating for the neighborhoods where homes sit vacant and property values decline. Despite these disturbing numbers, these

"On the anniversary of the costliest financial bailout in U.S. history, we back President Obama's renewed call for the creation of a new agency to bring commonsense oversight to the financial services industry and, in the process, protect consumers, taxpayers and the economy from a repeat of the current fiasco. The regulators responsible for making our financial system work have failed. That's clear from widespread foreclosures devastating millions of Americans and surrounding neighborhoods, from unfair bank overdraft fees and credit card practices that cost consumers tens of billions of

Statement by Michael Calhoun, President, Center for Responsible Lending The federal report card on the mortgage industry's voluntary effort to stop foreclosures shows a growing number of families have received a loan modification. That's good news, but hardly enough. Given the magnitude of serious delinquencies and projected foreclosures starts in the months ahead, these gains fall far short of what's needed to stem the foreclosure epidemic and restore the economy. The report from the Treasury Department shows that, of the seriously delinquent borrowers eligible for help, only 19 percent have

The Mortgage Bankers Association (MBA) reported today that serious mortgage delinquencies (those 90+ days past due or in foreclosure) reached record levels in 2nd Quarter 2009, surpassing the previous record set one quarter earlier. According to new MBA statistics, over 13% of all loans are now past due and 1 in 12 borrowers is seriously delinquent on their mortgage. By comparison, one year earlier just 1 in 22 borrowers was seriously delinquent, and two years ago only 1 in 40 was. This shows that the proportion of struggling homeowners continues to climb—even though the percent of mortgage

Statement of Eric Halperin, CRL Senior Litigation Counsel and Deputy Director "This morning's New York Times reported that a federal court in Manhattan has declined to take action on a lawsuit pending between Countrywide Financial Corporation and certain mortgage investors. Nothing in the court's decision casts any doubt on mortgage servicers' legal ability to modify distressed loans. Instead, Judge Holwell's decision merely determines that this pending case should be decided by a New York state court, not in federal court as Countrywide had requested. Judge Holwell made this decision without

The proposed regulations issued Tuesday, August 4 by the Virginia Bureau of Financial Institutions (BFI) confirm that payday lenders continue at every turn to avoid regulation. The Center for Responsible Lending applauds BFI for providing guidance and oversight of this industry, particularly when the legislature has allowed so many loopholes. The proposed regulations will: Prevent the industry's practice of avoiding state laws and regulation under cover of affiliate relationships. Prevent the industry from avoiding the 2008 and 2009 reforms by adding ancillary products such as life insurance

The report card issued by the Treasury Department today shows that financial companies deserve a failing grade in their voluntary efforts to modify home loans to help restore the U.S. economy. The results reveal that only 15 of every 100 families who are eligible for a modification of their mortgage have been offered one. That's 85 distressed families left with the prospect of losing their home for every 15 offered a helping hand. We applaud the Obama administration for providing data from individual loan-servicing companies to shed greater light on how tax dollars are being spent. This is a

The Center for Responsible Lending applauds the National Credit Union Administration (NCUA) for issuing guidance Wednesday to federal credit unions about payday loans, warning them of reputational and other risks connected with this activity. NCUA notes that fees including participation fees and minimum monthly charges should be counted towards the 18% APR cap. NCUA notes "…borrowers find themselves in cycles where their loans roll over repeatedly, incurring high fees…NCUA believes this dependence often reflects or exacerbates other financial difficulties payday loan borrowers are experiencing