Press Releases

Five Maine residents filed a complaint today against GMAC Mortgage, LLC (GMAC) on behalf of themselves and a class of Maine homeowners, alleging that the company routinely and systematically files false certifications that it has a right to foreclose on Maine homeowners, and false affidavits when asking courts to enter foreclosure judgments. The homeowners complain that GMAC files these false...

One in seven homeowners with a mortgage is past due or in foreclosure, according to the Mortgage Bankers Association's latest report on home loan delinquencies. That's up from one in eight a year ago and one in 11 two years ago. Although there was a dip in the share of homes in foreclosure, the report shows that the foreclosure epidemic...

Latinos and African Americans in California have experienced significantly higher foreclosure rates than non-Hispanic borrowers in the state, according to first-of-its-kind research released today by the Center for Responsible Lending. As a result, these communities represent more than half of all foreclosures, with 48% of foreclosures on Latinos and 8% on African Americans. These borrowers were more likely to receive...

"For years, consumer advocates have been deeply troubled by 'yield-spread premiums (YSPs),' the routine payments to brokers and lenders that essentially function as kickbacks for overcharging on home loans. The Federal Reserve's final rules on YSPs, issued yesterday, mark a welcome milestone that will finally end this practice—saving money for home buyers and making it easier to shop for the...

"American families, especially those most vulnerable financially, could save millions of dollars a year in costly overdraft fees if guidelines the FDIC proposed today are adopted. The guidelines would encourage the banks the FDIC oversees to offer customers lower-cost overdraft alternatives rather than charge unlimited high-cost overdraft fees—as many banks do, even on small debit card transactions. Under the proposal...

As the August 15th deadline nears for bank and credit union customers to opt in to high-cost overdraft programs, a new CRL analysis finds these firms market most aggressively and often misleadingly to their most vulnerable customers. Banks target these customers because they likely live on the edge financially and therefore are most likely to repeatedly overdraw accounts. To induce...

American families won a major consumer victory today when the Federal Trade Commission issued a new rule barring debt relief firms from collecting up-front fees from customers before any service is provided. We commend the FTC commissioners for exercising their authority to lay down common-sense rules in the debt settlement arena, where unfair and deceptive practices are rampant. The new...

President Obama's signing of the financial reform bill today marks a watershed in efforts to restore common sense to lending and financial markets. Our nation now has a roadmap for ending the unfair and deceptive practices that have cost millions of families their financial security and nearly capsized the economy. To members of Congress who worked so diligently to craft...

The current economic meltdown has been a nightmare for American families, and a recurrence would be a disaster for our nation. The Senate's vote today puts in place key reforms that help create a brighter future, one in which our financial system flourishes: People will get loans they can afford to repay, and principles of fairness and value in financial...

Washington, D.C.— Starting tomorrow, banks must obtain permission from new customers before enrolling them in costly overdraft coverage for debit-card transactions. The Federal Reserve Board's new rule improves the status quo but still falls far short of what's needed: Banks should not be allowed to impose exorbitant charges that bear no reasonable connection to the overdraft amount or a lender's...