Press Releases

Statement by Michael Calhoun, President, Center for Responsible Lending The federal report card on the mortgage industry's voluntary effort to stop foreclosures shows a growing number of families have received a loan modification. That's good news, but hardly enough. Given the magnitude of serious delinquencies and projected foreclosures starts in the months ahead, these gains fall far short of what's...

The Mortgage Bankers Association (MBA) reported today that serious mortgage delinquencies (those 90+ days past due or in foreclosure) reached record levels in 2nd Quarter 2009, surpassing the previous record set one quarter earlier. According to new MBA statistics, over 13% of all loans are now past due and 1 in 12 borrowers is seriously delinquent on their mortgage. By...

Statement of Eric Halperin, CRL Senior Litigation Counsel and Deputy Director "This morning's New York Times reported that a federal court in Manhattan has declined to take action on a lawsuit pending between Countrywide Financial Corporation and certain mortgage investors. Nothing in the court's decision casts any doubt on mortgage servicers' legal ability to modify distressed loans. Instead, Judge Holwell's...

The proposed regulations issued Tuesday, August 4 by the Virginia Bureau of Financial Institutions (BFI) confirm that payday lenders continue at every turn to avoid regulation. The Center for Responsible Lending applauds BFI for providing guidance and oversight of this industry, particularly when the legislature has allowed so many loopholes. The proposed regulations will: Prevent the industry's practice of avoiding...

The report card issued by the Treasury Department today shows that financial companies deserve a failing grade in their voluntary efforts to modify home loans to help restore the U.S. economy. The results reveal that only 15 of every 100 families who are eligible for a modification of their mortgage have been offered one. That's 85 distressed families left with...

The Center for Responsible Lending applauds the National Credit Union Administration (NCUA) for issuing guidance Wednesday to federal credit unions about payday loans, warning them of reputational and other risks connected with this activity. NCUA notes that fees including participation fees and minimum monthly charges should be counted towards the 18% APR cap. NCUA notes "…borrowers find themselves in cycles...

As the Treasury Department urges mortgage servicing companies to step up their efforts to stop foreclosures, the latest available figures show that the number of households at risk of foreclosure is seven times the number of loan modifications, and the gap has increased steadily for the past year. Visit the CRL web site for more information on how foreclosures continue...

Today the Federal Reserve Board (FRB) issued proposed rules that hold great promise for eliminating abusive and unfair practices that have become commonplace in the mortgage industry. If fully implemented, these rules could remove perverse incentives that now encourage mortgage brokers and lenders to routinely overcharge on mortgages, particularly higher-cost mortgages. Under the proposed rules, brokers and loan officers could...

A new policy brief by the Center for Responsible Lending chronicles the repeated failure of federal bank regulators over the years to rein in irresponsible lending practices. Example after example of regulatory delay or inaction demonstrates the need for a stand-alone, independent regulator focused solely on ensuring basic, common-sense safeguards for consumers. For the full report, please go here. Here...

During the surge of media attention on today's historic meeting between Pope Benedict XVI and President Barack Obama, it is important to note that only days before His Holiness used his own moral authority to express concerns for the current financial crisis. In his encyclical Caritas in Veritate (Charity in Truth), the Pope speaks to the developments that led to...