Press Releases

A new policy brief released today by the Center for Responsible Lending provides a state-by-state snapshot showing predatory payday and car title lenders increasingly moving into installment loans. The lenders are continuing to offer unsafe loans with excessive interest rates, which are carefully designed to trap borrowers in a cycle of debt they cannot escape, and actively seeking to expand into new states. The report highlights that just because lenders are making an installment loan, it is no guarantee that it is a safe loan. The report makes recommendations to regulators and policymakers

Today, the Consumer Financial Protection Bureau's (CFPB) and Department of Education (DOE) issued a new report on student loan servicing that confirms concerns that the student loan servicing system is both hurting borrowers and taxpayers and in need of swift regulatory reform. Maura Dundon is Senior Policy Counsel at the Center for Responsible Lending and an expert on student lending issues. She issued the following statement: This report confirms that student loan servicing is a mess in need of an urgent cleanup. The CFPB should use all available tools, including rulemaking, to address these

Yesterday, the federal Consumer Financial Protection Bureau (CFPB) announced that Fifth Third Bank will pay $21 million back to consumers as a part of two investigations into the institution’s practices. The bank will pay $18 million to African American and Latino consumers for engaging in auto dealer markups a discriminatory lending practice that resulted in borrowers of color paying more for their car loans. It will also pay $3 million in relief to borrowers affected by deceptive add-on product credit card marketing. Chris Kukla, Senior Vice President and expert on auto lending issues at the

This week, North Dakota Senator Heidi Heitkamp introduced the Private Education Loan Refinancing Act of 2015, which would provide relief to students burdened with risky or expensive loans. The bill would create incentives for lenders to work with borrowers to refinance and modify loans to help borrowers avoid default. In the mortgage market, loan modification and refinancing has helped many people avoid foreclosure or save money. There would be no net cost to taxpayers. Maura Dundon, Senior Policy Counsel at the Center for Responsible Lending, issued the following statement: This bill should

Yesterday, the Consumer Financial Protection Bureau finalized changes to its Qualified Mortgage (QM) rule. The changes, which raise the number of loans a small creditor can re-sell and expand the number of banks that can qualify as a "rural bank," are a response to feedback from lenders. CRL Policy Counsel Yana Miles issued the following statement: The CFPB's Qualified Mortgage rule changes show a continuing openness to respond to the concerns of small banks and credit unions. These rules make it easier for community lenders to make certain loans. The changes need to be carefully monitored to

Despite a number of industry predictions, new data from the Home Mortgage Disclosure Act (HMDA) report today revealed that Dodd-Frank's mortgage protections and the Consumer Financial Protection Bureau's related new mortgage regulations did not produce a decrease in mortgage accessibility for homebuyers. The data also show that borrowers of color and families with low-to-moderate incomes continue to be underserved in the mortgage market, especially by lenders who sell loans to Fannie Mae and Freddie Mac. For these borrowers, access to affordable mortgages is very limited. In addition

Today, the federal Consumer Financial Protection Bureau (CFPB) announced new members of its Consumer Advisory Board, including Center for Responsible Lending (CRL) Senior Vice President Chris Kukla. The board brings together external experts, industry representatives, consumers, community leaders and advocates to discuss consumer protection issues, financial products and services, civil rights and underserved communities. Kukla, who leads CRL's auto lending initiatives, issued the following statement: It is an honor to be named to the board, and I look forward to working with its members. I

In recognition of Hispanic Heritage Month, September 15-October 15, the Center for Responsible Lending will highlight issues this month that disproportionately affect this community. If your outlet is planning or considering coverage of financial services that pose challenges for consumers in general or Latinos in particular, CRL experts in policy, research and advocacy are available for scheduled interviews. View a factsheet on these abusive practices. For more information, or to arrange an interview with a CRL spokesperson on this issue, please contact Andrew High at Andrew.High

Today, the Consumer Financial Protection Bureau (CFPB) announced enforcement actions against Encore Capital Group and Portfolio Recovery Associates, the two largest debt buyers active in the United States. According to the Bureau, Encore will pay up to $42 million in refunds to affected consumers, a $10 million fine and cease collection on $125 million in debts. Portfolio will pay $19 million in consumer refunds, a $8 million fine and cease collection on over $3 million in debts. The CFPB documented the companies buying debts that were potentially inaccurate, lacking documentation or

The Federal Housing Administration's mutual mortgage insurance fund plays a critical role in providing access to credit so that millions of Americans—many of whom are first-time buyers, come from low- and moderate-income backgrounds, or purchase homes in communities of color—can be successful homeowners. The FHA today proposed revised language on the lender certification of loan and borrower eligibility and lender disbarment. Mike Calhoun, CRL president, commented: The housing market needs to provide consumers with affordable, well-underwritten home loans, ensure the fiscal strength of the