Press Releases

WASHINGTON, D.C. – Today, Congress is set to pass a coronavirus relief package that is crucial and yet falls short of fully addressing the great, pressing needs of a nation in crisis. Center for Responsible Lending (CRL) Federal Advocacy Director and Senior Counsel Ashley Harrington made the following statement: As the number of dead surpasses 315,000 and millions of families find themselves at risk of losing their homes, Congress finally presents us with a relief package that is sorely needed. But it is not expansive enough to bring necessary relief and stability to our nation, especially for

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) released the second part of its final debt collection rule, which includes new provisions on time-barred or “zombie” debt for which the statute of limitations has expired, validation notices, and language access, among others. The first part of the rule, released in October, focused on telephone calls and electronic communications. Despite the urging of many advocacy organizations, including the Center for Responsible Lending (CRL), the CFPB’s final rule does not ban the collection of time-barred debt out of court

Washington, D.C. – Today, the Center for Responsible Lending, Bank Policy Institute and the Independent Community Bankers of America issued the following joint statement in response to a vote by the FDIC to approve a final rule on Industrial Loan Companies (ILCs): On Tuesday, the Federal Deposit Insurance Corporation finalized its rule governing supervision of parent companies of industrial loan companies. The FDIC has stated that this rule will formalize and strengthen the existing supervisory processes and policies that apply to parent companies of ILCs that are not subject to Federal

Makes it easier for lenders to exploit more financially vulnerable families WASHINGTON, D.C. – Today, the Federal Deposit Insurance Corporation (FDIC) approved a new final rule to facilitate chartering additional under-regulated Industrial Loan Companies (ILCs). The FDIC rule will encourage non-bank companies to acquire banks or seek ILC charters for their subsidiaries that enable those ILCs to preempt state consumer protection laws, including interest rate caps, without the federal oversight of the parent company required for traditional banks. The FDIC is already ignoring rent-a-bank schemes

Access to safe mortgage products and wealth-building opportunities of homeownership are at stake Update to implementation of the Dodd-Frank law’s overhaul of the housing market and its requirement that lenders check borrowers’ ability-to-repay WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) yesterday released two final rules that update guidelines for what are considered borrower-safe qualified mortgage (QM) loans that provide lenders protection against litigation. The first rule is the General QM Final Rule. The second rule establishes a separate category for QMs, Seasoned

WASHINGTON, D.C. – Center for Responsible Lending Executive Vice President Nikitra Bailey released the following statement on the passing last night of longtime U.S. Senator Paul Sarbanes (D-Md.), who chaired the Senate Banking, Housing, and Urban Affairs Committee: Our heartfelt condolences go out to Senator Sarbanes’s family as they mourn his passing. For decades, Senator Sarbanes was a champion for affordable, sustainable housing and for consumer protection. He brought to light predatory mortgage lending practices that proliferated in the early 2000s, including hidden costs and excessive

WASHINGTON, D.C. - Secretary of Education Betsy DeVos announced Friday evening that the Trump Administration will extend the federal student loan repayment forbearance, including suspension of interest accrual and collections activity, through Jan. 31, 2021. Center for Responsible Lending Federal Advocacy Director and Senior Counsel Ashley Harrington released the following statement: While we are relieved that payments will not resume in January, a one-month extension is insufficient. Congress needs to approve a stimulus relief package that will pause student loan payments for the duration of

Durham, NC — Over half (55%) of surveyed North Carolinians with student debt who earn less than $50,000 in annual income report a decrease in their household income since the onset of COVID-19, according to a Morning Consult survey commissioned by the Center for Responsible Lending. Despite a pause in payments for many student loan borrowers as provided in the relief CARES Act, nearly three quarters (73%) report stress associated with their student debt. More than two-thirds (69%) report they would have trouble with unexpected financial emergencies or are falling behind in their finances.

WASHINGTON, D.C. – Today, the Center for Responsible Lending (CRL) and the National Consumer Law Center (NCLC) released a policy report illustrating a path out of the student debt crisis and proposing solutions for a more equitable and efficient higher education system. Road to Relief: Supporting Federal Student Loan Borrowers During the COVID-19 Crisis and Beyond lays out a roadmap with four recommendations for policymakers to provide substantial relief to student borrowers as they navigate the COVID-19 public health crisis and recession, allowing them to emerge with greater financial

DURHAM, N.C. – Yesterday, Federal Reserve Chairman Jerome Powell announced his intention to comply with a request by Treasury Secretary Steven Mnuchin that the Federal Reserve return unused emergency relief funds by the end of the year. Center for Responsible Lending Executive Vice President Keith Corbett made the following statement: Our country continues to be roiled by a pandemic that is taking the lives of hundreds of thousands of people. The worst impacts of this catastrophe, both health-wise and economically, are being experienced in Black and Brown communities. And yet the relief