Research & Policy

SB 1015, the Homeowner and Homebuyer Protection Act, was passed in 2010. This legislation addressed a number of predatory real estate practices that took advantage of families having trouble paying their home loan or finding a decent loan to buy a home. These abuses included foreclosure rescue scams, as well as lease option and contract for deed agreements. HB 654...

The North Carolina Consumer Finance Act lets non-bank lenders make installment loans of $10,000 or less. House Bill 810, Consumer Finance Act Amendments, as amended, would have: Increased the maximum loan size from $10,000 to 15,000, Increased the interest charged on these loans, which can already be as high as 54% annual interest, Added numerous new fees, and Continued to...

HB 814 and its companion SB 559, Fair Compensation for Mortgage Broker/Lender would have rolled back mortgage lending protections in our state including: Weakening our predatory mortgage lending protections by raising the limits on allowable fees and discount points, Cutting broker bond requirements in half, a serious problem for borrowers who have been harmed by a broker, and Reducing the...

North Carolina allows wage garnishment for certain judgments, such as child support and taxes. House Bill 30 as originally drafted, Allow Wage Garnishment to Satisfy Judgments, would have expanded wage garnishment to other judgments, putting struggling families at severe financial risk. Once concerns were raised with the bill sponsor, the bill was amended significantly to deal with issues raised by...

HB 717 bill excludes certain mortgage insurance premiums from our NC definition of "points and fees" in high cost home loans, weakening our predatory mortgage lending protections. The NC Commissioner of Banks (NCCOB) persuaded the bill sponsors to allow NCCOB to investigate these issues further and recommend to the legislature what action, if any, should be taken. Since the bills...

Consumer groups fear OCC proposed guidance may legitimize and facilitate the spread of payday lending by national banks, and banks would continue abusive overdraft practices—harming bank customers, undermining state payday loan laws, and weakening the long-term safety and soundness of financial institutions.

CRL supports the principles laid out in the OCC's proposed guidance on overdraft and bank payday loans, but hopes the OCC will dramatically strengthen its guidance to address existing problems and to avoid inadverdently entrenching abuses. Among our recommendations, CRL urges the OCC to act quickly and decisively to stop payday lending before it becomes pervasive among banks. CRL also...

Federal regulators are proposing to mandate down payments as high as 20% on future home loans, but even a 10% down payment requirement would stifle economic recovery and lock out responsible home buyers. How Many Years Would it Take These Workers to Save for a 10% Down Payment? Graph: Years to save for 10% down payment by 10 common occupations...

The mortgage market of the future can drive economic growth without shutting out responsible home buyers. Here is an overview of CRL's recommendations to regulators: The Agencies should delay finalizing the QRM rule until after the final QM rule has beenissued. The QRM final rule should be harmonized with the QM final rule to facilitate compliance. QRM loans should meet...

In its first formal comment to the CFPB, the Center for Responsible Lending supports new Dodd-Frank mortgage reforms and urges the CFPB to ensure that lenders have appropriate consequences if they fail to abide by the rules.

In its first formal comment to the CFPB, the Center for Responsible Lending supports new Dodd-Frank mortgage reforms and urges the CFPB to ensure that lenders have appropriate consequences if they fail to abide by the rules.

A new CRL report describes how banks are adding payday loans to their arsenal of predatory loan products. These loans drain cash from cash-strapped Americans, often social security recipients. The banks are making loans to their checking account customers based on the customer's direct deposit paycheck. The fees are high and the entire principal is deducted on payday, which, like...

Unsustainable lending pushed us into the financial crisis, and sustainable lending and responsible consumer financial services products are needed to restore and maintain economic health. An independent Consumer Financial Protection Bureau (CFPB), as enacted by the Dodd-Frank Act (DFA or Dodd-Frank), is critical to reestablishing these sustainable lending practices.

Download our analysis A new poll shows that American voters broadly support the 2010 Dodd-Frank Wall Street Reform law. The poll--conducted by Lake Research Partners for CRL, AARP, and Americans for Financial Reform--reveals that voters overwhelmingly support the Consumer Finance Protection Bureau and its specific functions. Learn more about CFPB Some key findings from this poll: Likely voters, including majorities...

Unsustainable lending pushed us into the financial crisis, and sustainable lending and responsible consumer financial services products are needed to restore and maintain economic health. An independent Consumer Financial Protection Bureau (CFPB), as enacted by the Dodd-Frank Act (DFA or Dodd-Frank), is critical to reestablishing these sustainable lending practices.

Download our analysis A new poll shows that American voters broadly support the 2010 Dodd-Frank Wall Street Reform law. The poll--conducted by Lake Research Partners for CRL, AARP, and Americans for Financial Reform--reveals that voters overwhelmingly support the Consumer Finance Protection Bureau and its specific functions. Learn more about CFPB Some key findings from this poll: Likely voters, including majorities...

On July 21, the CFPB will be a cop on the beat to enforce the laws on credit cards, mortgages, student loans, prepaid cards, and other kinds of financial products and services. This report from the Bureau summarizes in one place what they've been up to.

Mortgages servicers should be required to give every mortgage holder "a good-faith review of foreclosure alternatives" before taking steps to take his or her home, CRL president Michael Calhoun told Congress today. In testimony before the House Financial Services Committee's Subcommittee on Financial Institutions and Consumer Credit and Subcommittee on Oversight and Investigations, he recommended that servicers be required to...

CRL joins several groups in opposing proposed rules that would continue the OCC's broad preemption of state laws governing mortgages, credit cards, bank accounts and other banking products.

Better Overdraft Policies Put Money Back In Consumers' Pockets Regulators Must Stop Remaining Overdraft Abuses A new study by Market Rates Insight finds that Americans saved $1.6 billion in overdraft fees in 2010 after the "opt-in" rule took effect last summer. Once banks were required to get explicit permission before approving debit card overdrafts for a fee, most Americans said...

The Coalition for Sensible Housing Policy, including CRL, issued this paper to make the case for sound mortgage lending practices -- but not mandated down payments that would bar responsible home buyers from ownership. Learn about Qualified Residential Mortgage (QRM) proposals.

Federal regulators are proposing to mandate down payment requirements up to 20% on future home loans. Their proposal is part of the proposed standards for defining a " Qualified Residential Mortgage," or QRM. This brief updates and supplements "Don't Mandate Large Down Payments on Home Loans," published by CRL in March 2011. [1] Our analysis shows that a 10% down...

Read the full, original report or executive summary from February 2011. Watch our 4.5 minute video of Senior Researcher Josh Frank discussing the findings. Updated CARD Act Research (June 2011): Clearer Pricing Not Raising Rates CRL's research shows that the Credit CARD Act of 2009 has reversed much of the unclear pricing on credit cards, without leading to higher rates...

Read entire bill >> See our talking points >> What's happened with HB 810? >> The Consumer Finance Act lets non-bank lenders make small loans of $10,000 or less. The current law creates two tiers of lenders: "53-173" lenders who can make loans up to $3000 and "53-176" lenders who can make loans up to $10,000. If HB 810 had...

Why Did We Oppose HB 810? Read entire bill >> Read our summary of the bill >> What's happened with HB 810? >> Rates on small loans in NC are already too high. With families struggling, making these loans more expensive will be a disaster for NC consumers. 25 to 54% interest is enough. Consumer finance companies can already charge...