CRL in the News

According to a recent report from the Center For Responsible Lending, borrowers making payments on their student debt who enroll in SAVE could see their ratio fall somewhere between 1.5% to 3.6%. The SAVE plan increases the income exempted from your payment calculation to 225% of the poverty line, from 150%. This means that for single people, approximately the first...

Under the U.S. Department of Education’s income-driven repayment plans, student loan borrowers are entitled to get any of their remaining debt forgiven after 20 years or 25 years. Yet many have not seen that promised relief. “This is due, in part, to strong financial disincentives for student loan servicers to inform consumers about the program and their ability to qualify...

"Financial institutions had encouragement from the federal government not to lend to majority minority communities. Banks were empowered to decline loans from people of color," said Mitria Spotser.

The second panel on solutions to assist first-time home buyers was moderated by NAR Vice President of Policy Advocacy Bryan Greene, with Katrina Jones, Fannie Mae's vice president of equity and impact; Michael Calhoun, Center for Responsible Lending; George Fatheree, "Bruce's Beach" attorney and ORO Impact founder; and David Berenbaum, deputy assistant secretary for housing counseling at the Department of...

Your debt-to-income ratio, which is usually calculated by dividing all your monthly debts by your monthly income, is a key factor in mortgage underwriting, said Christelle Bamona, a senior researcher at the Center for Responsible Lending. “Those eligible for SAVE will experience reduced payments, which will in turn lower their debt-to-income ratio,” Bamona said. Most borrowers should qualify for the...

Their bill is endorsed by organizations that include the Mortgage Bankers Association, the Center for Responsible Lending and the National Consumer Law Center.

Mitria Spotser, federal policy director at the nonprofit Center for Responsible Lending, said small minority-owned banks, credit unions and nonprofit organizations are increasingly important mortgage providers in minority and low-income neighborhoods. Policymakers and bank regulators should encourage their work, both with increased federal CDFI funding and with continued pressure on larger banks to buy mortgages from them, she said. “We...

Overdraft programs today are hugely profitable. If banks were to bring their overdraft fees down to the level required to cover costs, they would forgo these profits. But to challenge the CFPB proposal on that ground is to argue that the financially vulnerable should be expected to subsidize the costs of providing checking accounts to the rest of us. To...

Total fees translate to an annual percentage rate of more than 330% for the average earned wage access user — a rate comparable to payday lenders, according to the California report. It analyzed data from seven anonymous companies across business models and fee structures. “It’s another version of payday loans,” Monica Burks, policy counsel at the Center for Responsible Lending...

Policymakers and regulators should follow Colorado's lead by protecting consumers from predatory rent-a-bank loans and defending the laws already put in place. Banks and investors would be wise to avoid reputational risks that accompany participation in these schemes.