Congress Must Address Foreclosures

Now that Congress has passed the $700 billion bailout bill to address the credit crunch, there is an urgent need to address the root causes of today's economic crisis – massive foreclosures in our communities. Going forward, CRL calls on Congress to act quickly to assist families facing foreclosure. "Any plan that fails to stop foreclosures will ultimately fail to fix the crisis," said Michael Calhoun, president of CRL. "Wall Street firms and banks caused a massive foreclosure crisis in this country, and this bailout provides no meaningful way to end it. It doesn't stop the epidemic of

Payday loans strip wealth from communities of color

Prop 200 will entrench an industry that preys on Arizona's working families Read the Report >> As Arizona citizens consider a measure the payday lending industry, based out of state, has paid to put on the ballot this November and spent millions marketing, they should know the facts about Proposition 200 and payday lending, say national experts and state advocates. A new report from the Center for Responsible Lending sheds some light on the measure and its expected impact. First, Prop 200 offers no reform of the predatory practice of payday lending. Second, it would, in fact, make 400 percent

Proposed Bailout Does Virtually Nothing to Assist Troubled Homeowners

As civil rights, consumer, and housing organizations that represent homeowners and communities devastated by the foreclosure crisis, we are extremely disappointed that the proposed bailout package does virtually nothing to assist troubled borrowers. Provisions discussed in both the House and the Senate to assist homeowners modify their loans and save their homes have been largely abandoned. These provisions would have addressed the root cause of the current economic crisis by helping to stop the decline in home prices and would have given relief through the bankruptcy courts, required

Banker Bailout is Neither Effective nor Fair

Today the Center for Responsible Lending (CRL) registered major disappointment with a bailout proposal that fails to address the root causes of today's economic crisis. While agreeing that the current situation calls for substantial government intervention, the Center says the plan that emerged is neither effective nor fair. "Any plan that fails to stop foreclosures will ultimately fail to fix the crisis," said Michael Calhoun, president of CRL. "Wall Street firms and banks caused a massive foreclosure crisis in this country, and this bailout provides no meaningful way to end it. It doesn't

Homeowner: People like me are left out and we’re the victims

My name is Candace Weaver and I'm an eighth grade teacher at Roland Grise Middle School in Wilmington, North Carolina. I teach 8th grade language arts and social studies. In December 2005, I refinanced my house to pay bills. My husband was recovering from a heart attack and was out of work. We took out an adjustable rate mortgage with an initial rate of 8.85% that eventually went up to 11.375% two years later. I didn't understand I had an adjustable rate mortgage that could go up from 8.85% to 11.85% after two years. I certainly did not know it could go up as high as 15.85% and that it had a

What Leaders Are Saying About Bailout Plan

A Sample of What Leaders Are Saying … Wall Street aggressively marketed loans that were damaging, deceptive, and led to the worst foreclosure epidemic in decades. The government's so-called solution bails out the very companies that were behind this crisis, but does absolutely nothing to help people stay in their homes. This country is facing the greatest lost of wealth since the Great Depression and Congress needs to step up for ordinary citizens." - Reverend Jesse L. Jackson, Founder/President Rainbow Push Coalition * * * Government regulators were blind while mortgage lenders and investors

House passes Credit Cardholders Bill of Rights

The Credit Cardholders Bill of Rights passage today in the House signals a return to real consumer protections and a welcome change to credit card company business as usual. The Center for Responsible Lending commends Rep. Carolyn Maloney and Financial Services Chairman Barney Frank who championed the legislation, which will restore some balance and fairness to a regulatory system that has been too one-sided for far too long. We call on the Senate Leadership to follow the actions of the House in moving a companion bill toward the same outcome. For more information: Kathleen Day at (202) 349

Eakes: Bailout Must Give Homeowners Access to the Courts

Hello, I'm Martin Eakes, founder and head of Self Help, one of the nation's largest community development institutions, and I'm also the CEO of the Center for Responsible Lending. I appreciate the invitation from the Leadership Conference on Civil Rights to be here today. The Paulson $700 billion bailout simply will not work to stabilize the economy if it does not address the underlying problem of home foreclosures and falling home prices. As proposed, the bailout has virtually nothing of benefit to middle-class homeowners facing distress. According to Credit Suisse, 6.5 million homes will be

Bailout Won’t Stop Foreclosures

The government plan announced by Treasury Secretary Paulson and Fed Chairman Bernanke fails to deal with the root cause of the crisis---families in foreclosure----and instead is purely and simply a bailout of the lenders who created this disaster. The bailout will not solve our economic problems because it will do virtually nothing to stop the foreclosure epidemic. Continuing foreclosures will drag down the economy even further. A truly comprehensive plan must also benefit ordinary, hard-working Americans, the ones who already are bearing the brunt of Wall Street's excesses. If it doesn't

Payday ballot measure would cost Arizonans $149 Million

Over 700 payday lenders across the state of Arizona charge up to 459 percent annual interest on loans that trap their customers in long-term debt, finds a new report from the Center for Responsible Lending. A ballot measure on which the payday lending industry has spent $9 million so far to market in the state as "reform" would only reduce the interest rate to 391 percent, and cancel the 2010 expiration of an exemption for payday lenders from the 36 percent cap that covers other lenders. "Proposition 200 is not real reform,´ said Attorney General Terry Goddard, announcing his opposition to the