CRL in the News

The question of who is the worst member of President Trump’s administration could keep a dinner party entertained for hours. Is it Commerce Secretary Wilbur Ross, the multimillionaire who felt impelled to lie about being a billionaire? Former Environmental Protection Agency administrator and schnorrer extraordinaire Scott Pruitt? Labor Secretary Alexander Acosta, who, when he was a U.S. attorney, let billionaire sex offender Jeffrey Epstein off with a mere slap on the wrist? Or could it be acting White House chief of staff Mick Mulvaney, who has gone from turning the Consumer Financial

WASHINGTON, D.C. — (RealEstateRama) — Center for Responsible Lending (CRL) President Mike Calhoun testified before the U.S. Senate Committee on Banking, Housing, and Urban Affairs for a hearing on “Chairman’s Housing Reform Outline: Part 2.” In his testimony, Calhoun discussed that any reform of the U.S. housing system must ensure access to safe and affordable mortgage loans for all creditworthy borrowers, including low-income borrowers and borrowers of color. Furthermore, any proposed legislation should provide equal treatment for small lenders, including community banks and credit unions

The Senate Banking, Housing, and Urban Affairs Committee held the second part of its hearing on Committee Chairman Mike Crapo’s Housing Finance Reform outline on Wednesday. Testimonies by mortgage banking and housing experts gave further insights into the best way forward to strengthen and implement this outline. “Today, the Committee continues the conversation about the state of our housing finance system, and how we can set it on a permanent, sustainable course that protects taxpayers and fosters greater competition,” Sen. Mike Crapo, said in his opening statement.

WASHINGTON — Senators dove deeper Wednesday into the fight over which housing finance reform plan will work for lenders of all sizes, just as the Trump administration moved closer to crafting its own reform plan. The second Senate Banking Committee hearing this week on reforming the government-sponsored enterprises touched on whether Fannie Mae or Freddie Mac should be converted into private-sector companies that compete with other guarantors in the market, or whether such a framework could disadvantage smaller loan originators.

Payday loans can be a welcome rescue for people without credit or who are hit with an unexpected emergency, but small, short-term loans can accumulate debt in weeks due to interest rates that can reach 500 percent or higher. What does it take to pay off a loan secured by the promise of a future paycheck? What are the risks associated with borrowing from these types of "quick cash" services? How could the Consumer Financial Protection Bureau's rescinding of a proposed payday loan rule affect borrowers and the payday lending industry? How are state and local polices addressing predatory payday

Payday loans are marketed as quick cash to help people get to their next paycheck, but they come at a great cost with an average interest of 300 percent and people getting multiple loans over time, according to a 2016 report. The Community Financial Services Association of America, which lobbies on behalf of payday lenders, held their annual conference in Trump National Doral Miami recently and faith leaders from across South Florida protested the event, arguing payday lenders disproportionately target low-income minority groups. Angel Pittman protested at the event and is the Vice President

Senators Maggie Hassan (D-NH) and Dick Durbin (D-IL) today introduced the Preventing Risky Operations from Threatening the Education and Career Trajectories of Students ( PROTECT Students) Act of 2019, a bill that would enshrine in law many key reforms sought by advocates for veterans and other students in order to prevent predatory practices by for-profit colleges. Many in the for-profit higher education industry, aided by hordes of well-paid Washington lobbyists, have fought to oppose these very reforms. Given the industry’s deep ties to the Trump administration, especially the Betsy DeVos

A Fannie Mae and Freddie Mac fix is on Washington’s agenda —- again. Congress this week kicks off its latest attempt to forge a path forward for the mortgage giants, something that’s proved extremely elusive in the 11 years that the companies have been under U.S. control. Starting Tuesday, Senate Banking Committee Chairman Mike Crapo will hold two days of hearings on his plan for returning Fannie and Freddie to private ownership and giving the government an explicit role in backstopping the housing market.

In recent years, a number of major for-profit operators such as Education Corporation of America, Vatterott Colleges, Education Management Corporation, ITT Tech and Corinthian Colleges have abruptly closed their doors under the weight of mismanagement, scandal and state and federal investigations. As a result, tens of thousands of students have been left wondering how to recover the time and money they invested in an education that suddenly vanished. The Department of Education led by Secretary Betsy DeVos has harmed students by repeatedly giving bad actors in the for-profit college sector a

Former Consumer Financial Protection Bureau Director Richard Cordray attacked the Trump Administration today for retreating on consumer financial protection. Aggressive policies are needed to protect consumers, said Cordray, pointing to mortgage market abuses that helped to propel the recession as a poster child. He urged states to take up the slack. “More consumer protection from the states is a good thing,” said the CFPB’s first head. He was appointed by former President Barack Obama.