CRL in the News

The second panel on solutions to assist first-time home buyers was moderated by NAR Vice President of Policy Advocacy Bryan Greene, with Katrina Jones, Fannie Mae's vice president of equity and impact; Michael Calhoun, Center for Responsible Lending; George Fatheree, "Bruce's Beach" attorney and ORO Impact founder; and David Berenbaum, deputy assistant secretary for housing counseling at the Department of...

Your debt-to-income ratio, which is usually calculated by dividing all your monthly debts by your monthly income, is a key factor in mortgage underwriting, said Christelle Bamona, a senior researcher at the Center for Responsible Lending. “Those eligible for SAVE will experience reduced payments, which will in turn lower their debt-to-income ratio,” Bamona said. Most borrowers should qualify for the...

Their bill is endorsed by organizations that include the Mortgage Bankers Association, the Center for Responsible Lending and the National Consumer Law Center.

Mitria Spotser, federal policy director at the nonprofit Center for Responsible Lending, said small minority-owned banks, credit unions and nonprofit organizations are increasingly important mortgage providers in minority and low-income neighborhoods. Policymakers and bank regulators should encourage their work, both with increased federal CDFI funding and with continued pressure on larger banks to buy mortgages from them, she said. “We...

Overdraft programs today are hugely profitable. If banks were to bring their overdraft fees down to the level required to cover costs, they would forgo these profits. But to challenge the CFPB proposal on that ground is to argue that the financially vulnerable should be expected to subsidize the costs of providing checking accounts to the rest of us. To...

Total fees translate to an annual percentage rate of more than 330% for the average earned wage access user — a rate comparable to payday lenders, according to the California report. It analyzed data from seven anonymous companies across business models and fee structures. “It’s another version of payday loans,” Monica Burks, policy counsel at the Center for Responsible Lending...

Policymakers and regulators should follow Colorado's lead by protecting consumers from predatory rent-a-bank loans and defending the laws already put in place. Banks and investors would be wise to avoid reputational risks that accompany participation in these schemes.

As outlined in a recent report by the Center for Responsible Lending (CRL) and California Policy Lab (CPL), the SAVE plan aims to substantially decrease monthly loan payments for borrowers, thereby improving their debt-to-income ratio. This improvement could enhance an individual’s chances of qualifying for a mortgage loan. Notably, the repayment structure under the SAVE plan would be tailored to...

Nadine Chabrier, senior policy counsel at the Center for Responsible Lending, said: 'The monthly subscription fee attached to the Klarna Plus product is clearly a finance charge under the Truth in Lending Act, so we expect Klarna and other lenders offering similar products will provide consumers with the disclosures and consumer protections required by that law.

"There is limited research on how this plan could impact other dimensions of financial security for borrowers. For example, how could this plan affect borrowers' ability to obtain wealth-building assets, like mortgages or business loans?" said report co-author Christelle Bamona, senior research at CRL. "Research has shown previously that student loan debt has prevented several families from acquiring assets like...