Press Releases

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...

"This proposed regulation, in conjunction with the important efforts of our military service organizations and advocates, veteran service organizations, and responsible lenders, would help ensure that our service members and their families are as far beyond the reach of financial exploitation as possible." Department of Defense, Press Release, September 26, 2014 Today, the Department of Defense released proposed rules to...

Today, the Department of Defense released proposed rules to further protect service members and their families from predatory lending practices. If fully implemented, these rules will strengthen protections under the Military Lending Act and close loopholes unscrupulous lenders use to target military families with unconscionable high-cost loans. In response, Center for Responsible Lending president Mike Calhoun issued the following statement...

This week, CitiBank became the latest in a band of banks to unveil a new checking account – one without checks or overdraft fees. This move not only underlines the rapidly declining use of checks – but also awareness about the harmful financial effects bank fees have on consumers, especially economically vulnerable consumers. Rachel Anderson of CRL comments: Excessive and...