Research & Policy

HR 6076: Home Retention and Economic Stabilization Act Why is H.R. 6076 needed? Approximately 20,000 subprime foreclosures are starting every week, and the situation is projected to get worse. The rate of foreclosures continues to accelerate, despite the efforts of programs like HOPE NOW, which encourage lenders and servicers to avoid unnecessary foreclosures by voluntarily modifying loan terms to make...

Read the executive summary (pdf) >> Unfair bank practices threaten to shred the safety net of Social Security for older Americans New CRL research finds that unauthorized overdrafts strip fees from Americans 55 and older at the level of $4.5 billion per year. Nearly $1 billion of that comes from people who are heavily dependent on Social Security income. CRL's...

In May 2008, the Federal Reserve Board, the Office of Thrift Supervision, and the National Credit Union Administration issued a joint proposed rule governing overdrafts. The rule would allow financial institutions to continue giving customers expensive loans even though they never asked for them. Research shows that the vast majority of bank customers are automatically signed up to receive costly...

Committee: U.S. House of Representatives Committee on Small Business For questions about this testimony, contact Julia Gordon at julia.gordon@responsiblelending.org or (202) 349-1878.

Committee: Ohio Senate Finance and Financial Institutions Committee

Committee: Senate Committee on Commerce, Science and Transportation Subcommittee on Interstate Commerce, Trade and Tourism

A new CRL survey finds respondents prefer that their bank or credit union deny debit card purchases that are not covered by the funds in their checking account, whether their purchase is for $5, $20 or $40. More consumers are enrolled in the most expensive option than any other option for covering overdrafts, the survey also finds.

Committee: U.S. House of Representatives Committee on Financial Services Subcommittee on Housing and Community Opportunity For questions about this testimony, contact Julia Gordon at julia.gordon@responsiblelending.org or (202) 349-1878.

Committee: U.S. Senate Committee on Banking, Housing and Urban Affairs

"Steered Wrong" Executive Summary In recent years, a majority of subprime loans made in the United States have been originated by mortgage brokers, who can properly be characterized as the "engine" of the subprime market. The rapid growth of subprime lending was fueled by thousands of mortgage brokers across the country delivering billions of dollars of subprime loans to mortgage...

Full Session Law (pdf) Bill Summary (pdf) This legislation requires mortgage loan servicers doing business in North Carolina to be licensed and imposes new standards on their loan collection activities, providing more protection for North Carolina homeowners. This bill adds mortgage servicing regulation to the regulation of mortgage bankers and mortgage brokers. New duties for mortgage servicers include: Safeguarding and...

In this report, we estimate how many homes—including families who are paying their mortgage on time—will suffer a decline in property values because of foreclosures in their neighborhoods. We also estimate how much the average family will lose in home equity, and how much of an impact the foreclosure crisis will have on city and county coffers.

OVERDRAFT LOAN = HIGH-COST NO-CHOICE CREDIT Protection? More like small loans with abusive terms. Banks and credit unions now enroll many of their account holders into the most expensive option for covering overdrafts—an option customers generally don't want and didn't ask for—and leave them without the information they need to protect their funds. Under these systems, financial institutions routinely approve...

Committee: California State Senate Banking, Finance & Insurance Committee

Committee: U.S. House Committee on Veterans' Affairs Subcommittee on Economic Opportunity

Committee: Financial Services and General Government Subcommittee of the U.S. House Appropriations Committee