The 1% down payment is here. Is it a win-win — or should cash-strapped homebuyers avoid it?

Source
Aarthi Swaminathan | Marketwatch
Yet being able to put down very little on a home is “a very powerful tool to expand access to credit, if it is done responsibly,” Mitria Wilson-Spotser, vice president and federal policy director at the Center for Responsible Lending, told MarketWatch. “Most lenders actually write mortgages to the conventional mortgage standard, which is the standard that’s established by Fannie Mae and Freddie Mac, and the Federal Housing Administration,” she said. “A 1% down payment does not violate any of those requirements.“

Conservatives hope Supreme Court defangs US consumer watchdog

Source
John Kruzel | Reuters
"The harm would be profound," said Ellen Harnick of the Center for Responsible Lending, a consumer advocacy group. "The market disruption, if existing rules are called into question, would be hard to overstate. ... All of the problems that led to the creation of the CFPB would now be unattended to."

Why so many people are paying to get their paychecks

Source
Tatiana Walk-Morris | Vox
Some cash advance apps push customers to pay a “tip” to the app to be able to access their funds. The term “tip” is effectively a way for apps to disguise fees, said Yasmin Farahi, deputy director of state policy and senior policy council at the Center for Responsible Lending. Consumers often don’t know that these fees are optional and cannot figure out how to opt out of them, she added. Employer-backed early wage services don’t ask for tips, but they may begin to if regulators allow it in the future, Andrew Kushner, policy counsel at the Center for Responsible Lending, told Vox. The fees can

Block Biden's New Student Loan Plan

Source
Jim Thomas | Newsmax
Consumer advocates have expressed disapproval of Republican initiatives to reduce aid. "We condemn this move to block a plan that will provide significant financial relief to low-income borrowers and communities of color," said Jaylon Herbin, director of federal campaigns at the Center for Responsible Lending, as reported by CNBC.

GOP Lawmakers Move to Block Biden's Helping Hand to Student Loan Borrowers

Source
Julia Conley | Common Dreams
"We condemn this move to block a plan that will provide significant financial relief to low-income borrowers and communities of color," said Herbin. "SAVE provides hope for borrowers as the administration continues to fight alongside advocacy groups to find other ways to achieve broad-based student loan relief. We continue to support President Biden in his quest to make our educational finance system fairer for all borrowers and oppose harmful legislation, such as these CRAs, that will set our already flawed student loan repayment system back to the pre-pandemic era."

The Fight Ahead Over Earned Wage Access

Source
Kate Fitzgerald | American Banker
The latest research from CRL suggests that for consumers who repeatedly pay fees and "tips" for expedited EWA funds through popular third-party EWA service providers like MoneyLion, Earnin and Dave, it amounts to a digital payday loan. In a survey CRL conducted in May among 300 users of direct-to-consumer EWA services, 39% said they feel like they must keep on using these fee-based products to meet ongoing expenses.

March on Washington: Economic Justice Remains Dream

Source
Charlene Crowell | Precinct Reporter Group
While the 1963 March on Washington brought more than 200,000 Americans to the nation’s capital in a historic call for jobs and economic justice, an event billed as a ‘continuation’ – not a commemoration will take place August 26 at the Lincoln Memorial. Co-sponsored by the National Action Network and the Drum Major Institute, organizers will focus on continuing the age-old fight for democracy, social justice, and civil rights.

$241M went to constituents of Republicans pushing CFPB changes

Source
Taylor Giorno | The Hill
“The CFPB’s funding structure is constitutional and critical to ensuring that it can carry out its consumer protection mission free from undue industry influence,” wrote community development credit unions and financial institutions in a May amicus brief.