CRL in the News
Consumer advocates and civil rights groups praised the D.C. Circuit's order. "The court’s decision to hear the petition is a step in the right direction. We need a strong and independent CFPB agency and director now more than ever,” said Mike Calhoun, president of the Center for Responsible Lending.
The financial futures of more than 12 million federal and private student loan borrowers who collectively owe approximately $300 billion is at the crux of a lawsuit filed by the Consumer Financial Protection Bureau (CFPB).
A report from the Center for Responsible Lending found that people of color in California who can afford to move into expensive neighborhoods typically choose not to. Instead, they mostly still choose to live in low-income, majority-minority neighborhoods.
Michael Calhoun, president of the Center for Responsible Lending, argued last month that, "If predatory lenders succeed in undermining Director Cordray and the CFPB, we will revert back to lax financial regulations. This will signal that it is once again open season on consumers. It could also cause yet another painful economic crisis caused by big banks and predatory lending that we simply cannot afford."
Citing the Trump administration's threat to the Consumer Financial Protection Bureau, a coalition of consumer advocacy groups and the top Democrats on the U.S. Senate and House banking committees on Thursday moved to defend the agency and its leadership. U.S. Sen. Sherrod Brown of Ohio and Rep. Maxine Waters of California, moving to intervene in a federal appeals court case, said the Trump administration cannot be counted on to defend the independence of the agency's single-director structure.
"The Center for Responsible Lending will continue to support the CFPB and Director Cordray as the Bureau fights to maintain its independent structure so it can carry out its mission", said Center for Responsible Lending President Mike Calhoun. That's why a number of consumer advocates and more than a dozen state attorneys general have stepped up, seeking to defend the CFPB if the new executive branch won't. Cordray's tenure will come to its natural conclusion in July of 2018, and he has made it clear that he does not anticipate any unexpected changes in the way the agency operates.
The groups seeking to intervene on behalf of the CFPB include Americans for Financial Reform, the Center for Responsible Lending, Self-Help Credit Union, the Leadership Conference on Civil and Human Rights, and U.S. Public Interest Research Group. They join 16 state attorneys general, who have also petitioned the court to help defend the CFPB.
"I think we were surprised by how quickly this was something that they wanted to look at," said Sarah Wolff of the Center for Responsible Lending, according to a USA Today report. "I think it unfortunately signals that they don’t place as great an emphasis as we would hope on access and affordability of mortgage credit.
In 2010, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. The law provided new protections, many modeled after laws on the books in North Carolina, and created the Consumer Financial Protection Bureau (CFPB) – an agency that finally made consumer protection a priority and the financial services industry accountable to working families.
At the height of the financial crisis in 2008, an estimated one out of every 54 homeowners lost their homes. Workers and seniors lost lifetimes’ worth of savings or retirement accounts, small businesses went under, and vulnerable consumers fell victim to toxic and manipulative financial products offered by Wall Street and the big banks.