Press Releases

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. Borrowers of color see their loans marked up more often and by a greater percentage. Most consumers have no idea the practice exists and that car dealers are adding extra interest onto

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 Center for Responsible Lending, offered the following remarks: The Department of Education's final gainful employment rule aims to prevent programs with extremely poor outcomes from receiving

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 for in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Center for Responsible Lending Vice President of Federal Affairs Ken Edwards made the following remarks on

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 report contradicts the industry's public claim that its loans are only used as a one-time, quick fix by consumers facing a cash crunch. House Financial Services Committee Ranking Member Rep. Maxine Waters, Los

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 Annual report and Industry Survey come as the Consumer Financial Protection Bureau (CFPB) is considering new rules aimed at curtailing abuses in the payday lending industry. The Department of Defense also recently proposed new rules to

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 in deceptive practices to pressure students to enroll. "Our research shows the urgent need for the Department of Education to issue a strong Gainful Employment rule regulating for-profit colleges," said

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 higher than what is permitted by New York state law. Beyond tribal lenders, these loans also included foreign ones with stateside headquarters where no interest rate caps existed for short-term loans. New York officials also alerted banks and other

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, these same populations are minimally participating in the mortgage market while it is relatively affordable due to historically low interest rates. As well, these borrowers are more likely to be served

"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 further protect service members and their families from predatory lending practices. Below is a summary of the changes. For more information or to speak with an expert