Press Releases

CRL welcomes moves by the U.S. Department of Education ("Department") to ensure that career education programs provide a sound return on investment for both students and U.S. taxpayers. Students and displaced workers often look to career education programs to build the skills they need to gain employment in particular fields. Many of these programs are offered by for-profit colleges, although student tuitions are typically funded by federal financial aid. In 2011-12, the US government made approximately $28 billion in Title IV grants and loans to students attending for-profit colleges. The

New mortgage lending rules proposed today by federal regulators take a big step forward in strengthening the U.S. housing market and economy. In revised proposed rules defining "qualified residential mortgages" (QRM), regulators crafted standards that address key causes of the past housing crisis and will prevent future abusive lending. At the same time, the newly-proposed rule will protect access to credit for many homebuyers by not mandating downpayment levels. Research from the UNC Center for Community Capital and the Center for Responsible Lending has shown that low downpayment home loans

Earlier today Joseph A. Smith, Jr., Monitor of the National Mortgage Settlement issued his fifth and final report detailing progress by the five participating servicers regarding their consumer relief obligations under the Settlement through June 30. The monitor has verified the data provided by one servicer (Ally/ResCap) as fulfilling settlement consumer relief obligations, and is evaluating two others (Bank of America and Chase) for completion.The servicers report that 643,726 borrowers have benefited from consumer relief totaling $51.33 billion, resulting in nearly $80,000 of assistance per

Last Friday, a Tennessee-based online payday lender stopped making loans nationwide after a crackdown by New York regulators. The state attorney general earlier asked major banks to cut ties with payday lenders making illegal online loans to New York residents. "This is a tremendous victory for families in every state," said Uriah King, CRL's vice president of state policy. "Contrary to payday lender spin, illegal lending can be stopped—and states are leading the way." Several states have targeted illegal payday loans in recent months, including Arkansas, Maryland, Pennsylvania and West

Fifth Third bank may soon be one of only two banks in the nation that makes payday loans. This week William Isaac, chairman of Fifth Third Bancorp (FITB), published a piece here defending payday loans and expressing concern about regulatory crackdowns on payday lending. This is not surprising given that—despite sharp regulatory warnings and widespread public opposition—Fifth Third may soon be one of only two banks in the nation that makes payday loans. Along with Regions (RF), Fifth Third appears to be attached to loans with triple-digit interest rates that mire people in debt. The banks

We commend the President for offering a clear vision for a full housing recovery. We also second the President's call for a swift confirmation of Rep. Mel Watt to serve as the head of the Federal Housing Finance Agency. As we enter into the reform of the mortgage finance system, it is vital to have a qualified Presidential appointee at the helm of this critical agency. Mr. Watt has a track record of strong leadership in crafting practical solutions during the housing crisis. Beyond the Watt confirmation: The Consumer Financial Protection Bureau's recently finalized Qualified Mortgage (QM)

Many banks and credit unions continue to charge abusive fees on debit cards and checking accounts, according to a new report by the Center for Responsible Lending. "High-Cost Overdraft Practices" finds that, in spite of regulatory changes in recent years, consumers paid more than $16 billion in fees during 2011, many triggered by manipulative banking practices. Debit cards carry fees that are the most disproportionate to the amount of the overdraft, even though banks and credit unions can simply decline these transactions without charging any fee at all. Some financial institutions do decline

For years many banks and credit unions have manipulated the order of debit and checking transactions to trigger more overdraft fees. In spite of consumer complaints, media attention and costly litigation, some financial institutions persist in this practice. We commend Senator Sherrod Brown for proposing a bill that would stop this sleight-of-hand trick once and for all.Not all banks and credit unions engage in reordering manipulation, but the practice remains widespread. Unfortunately, those that resist responsible and ethical practices undermine the American public's trust in all of our

Today marks an historic moment. After two years of a roller coaster ride following hard-won reform, Director Richard Cordray has been confirmed. The nation now has a fully empowered Consumer Financial Protection Bureau and can fully focus on the job Congress asked it to do three years ago. As businesses compete under the same set of rules, working families will receive fair financial services.We celebrate this great achievement and look forward to working with the Director to bring overdue relief to families who have dealt with abusive financial practices for far too long. ## For more

The American dream of homeownership strengthens families, communities, and our nation as a whole. Housing is also a major contributor to the American economy. Before our nation's economy can become strong again, our housing market must become robust. We are concerned that The Protecting American Taxpayer & Homeowner Act fails to provide a path forward to a strong housing finance system. Rather, it removes critical assistance that has helped tens of millions of homebuyers to receive affordable, fixed rate mortgages; preserved home values and helped the overall economy. This bill would mean more