Press Releases

As the nation marks Veterans Day tomorrow, leaders from Center for Responsible Lending and the California Reinvestment Coalition are urging California state legislators and the state's members of Congress to follow the lead of the Department of Defense and honor veterans by passing legislation reining in abusive payday lending. The Department of Defense recently issued new proposed rules to update...

In a letter sent today to Consumer Financial Protection Bureau Director Richard Cordray, a group of civil rights and economic justice organizations, including the Center for Responsible Lending, asked the Bureau to use its regulatory authority to curtail discretionary auto dealer interest rate markups. Court cases and enforcement actions over two decades have shown dealer markups result in racial discrimination...

For more information, contact Andrew High at Andrew.High@responsiblelending.org or 919-313-8533.

Today, the US Department of Education released the final "gainful employment" rule imposing new limits on career education programs with poor outcomes for graduates. The final rule, which only considers the outcomes of the minority of students who graduate, is significantly weaker than the proposed rule. Nevertheless, it provides some important new protections. Maura Dundon, senior policy counsel at the...

On September 22, 2014, financial regulators including the Office of the Comptroller of the Currency, Federal Reserve Board, Federal Deposit Insurance Corporation, Securities and Exchange Commission, Federal Housing Finance Agency and Housing and Urban Development, issued final rules to define a Qualified Residential Mortgage (QRM). The new rules are meant to define the risk retention rules for lenders as called...

CRL California Director Paul Leonard and California Representative Maxine Waters. Center for Responsible Lending (CRL) staff and consumer advocates based in Los Angeles gathered on October 10 to spotlight the threat posed by Predatory Payday Lending. A CRL analysis showing payday lenders rely on repeat borrowers to generate 76% of their revenue was released in advance of the meeting. The...

A Center for Responsible Lending analysis of two new reports on the payday lending industry from the California Department of Business Oversight (DBO) shows that payday lenders, who advertise their products as a one-time quick fix for consumers facing a cash crunch, generate 76% of their revenue from borrowers who take out 7 or more loans per year. The DBO's...

For-profit college attendees are more likely to incur unmanageable student loan debt and be unable to graduate than their peers attending other schools, according to new research released today by the Center for Responsible Lending. African-American and Latino students in particular have a high risk of experiencing these poor outcomes at for-profit colleges, which have a long record of engaging...

The Second Circuit Court of Appeals affirmed an earlier decision by the District Court for the Southern District of New York. In August 2013, the State of New York issued cease-and-desist orders to more than 35 payday lenders offering and making internet loans to state residents at annual interest rates in excess of 300 percent – more than 10 times...

The 2013 Home Mortgage Disclosure Act (HMDA) data confirms a persistent lack of access to the conventional mortgage market for African-Americans, Latinos, and middle class families. It is well documented that people of color and low wealth families received a disproportionate share of foreclosures due to being targets of mortgage loans with risky features that were not well underwritten. Today...