Press Releases

Senators Bob Corker (R-TN) and Mark Warner (D-VA) have introduced legislation to reform the nation's housing finance system that rightly recognizes the importance of having a government backstop to private capital. This is essential to providing ample liquidity and support for 30-year, fixed rate mortgages. Any mortgage finance legislation that does not include a full government backstop will fall short of true reform.The legislation attempts to advance broad access to mortgage credit. However, it includes a five percent down payment requirement, which is a restriction that will do more harm

We are pleased the Consumer Financial Protection Bureau (CFPB) has begun an extensive analysis of bank and credit union overdraft programs. Overdraft fees—many of them encouraged and generated through unfair and deceptive practices—cost consumers billions of dollars each year. Overdrafts are a particular problem when consumers use a debit card to make purchases or withdraw cash from ATMs. The CFPB report shows that requiring banks and credit unions to secure a consent form before charging customers overdraft fees on debit cards—the so-called "opt-in"—has not stopped unfair practices and is not

The final rules issued today by the Consumer Financial Protection Bureau strike the right balance: they safeguard consumers from abusive practices while helping lenders comply with new mortgage lending standards. The rules address two key issues related to the Dodd-Frank Act's mandate that lenders assess a borrower's ability to repay, particularly the standards a loan must meet to qualify as a "Qualified Mortgage." First, they properly prohibit mortgages with higher fees from gaining Qualified Mortgage (QM) status. Second, they tailor the QM standards for small lenders who hold mortgages in

Data released earlier today by HUD shows that the National Mortgage Settlement has brought more than $50 billion in principal reduction and savings to over 620,000 homeowners. Principal reductions and refinancing savings represent 60 percent of the total dollar amount. These savings show this negotiated agreement between the largest banks and state Attorneys General and the Administration is a strong move in the right direction. It provides meaningful relief to homeowners, even though it is not a cure-all for the foreclosure crisis. We look forward to the Monitor's upcoming report on

As the nation struggles to rebuild the housing market and broader economy, the White House's nomination of Rep. Mel Watt to head the Federal Housing Finance Agency (FHFA) is encouraging. Rep. Watt has been in Congress for twenty years, ably serving on the House Financial Services Committee. He was one of the first elected officials to warn about the dangers of subprime lending, offering legislation to nip predatory lending in the bud, and tirelessly advocating for ways to prevent needless home foreclosures. Watt brings to FHFA an ability to work with a variety of stakeholders, with many

Joint Statement by the following: Orson Aguilar, Executive Director, The Greenlining Institute Laura Berry – Executive Director, Interfaith Center on Corporate Responsibility Becky Bond – Political Director, CREDO Michael Calhoun – President, Center for Responsible Lending Lisa Donner - Executive Director, Americans For Financial Reform Tom Feltner - Director of Financial Services, Consumer Federation of America George Goehl - Executive Director, National People's Action Alisa Gravitz - President and CEO, Green America Wade Henderson – President and CEO, Leadership Conference on Civil and

On April 17 the California Senate Banking and Financial Institutions voted 5 to 3 to defeat SB 515, a payday lending reform bill. "This is a stinging defeat for those who want our communities served by safe and responsible financial products. Despite offering compromise and the industry's own favored proposal of a larger loan amount, the Senate Banking Committee members voted to continue allowing the payday lending debt trap to wreak financial havoc on California's desperate borrowers and communities," said Paul Leonard, California Director of the Center for Responsible Lending (CRL). The bill

What: The California State Senate Banking Committee will hear Senate Bill 515 on April 17th. The bill takes a dramatically different approach from previous efforts to reform payday lending by targeting the highly toxic aspects of these loans that cause the most damage to consumers – the debt trap. Borrowers take out consecutive 2-week loans—often multiple times—because they do not have enough money to repay their loan in full in so short a time. This bill will allow borrowers to access short-term, high-cost emergency credit, but afford them a more realistic opportunity to repay the loan. For

Two consumer advocacy groups today outlined how state lawmakers can bolster safeguards to prevent unnecessary foreclosures. The recommendations by the Center for Responsible Lending and Consumers Union would close gaps left by new federal mortgage servicing rules and by last year's settlement among 49 state attorneys general, federal officials and the five biggest mortgage servicers. To read the policy paper, go to http://rspnsb.li/ZwS1xu. Despite these recent advances, millions of families remain poised to lose their homes. There is room for states to build on these reforms and help avoid

Dealers should not be allowed to impose higher interest rates than necessary on consumers Yesterday the Consumer Financial Protection Bureau announced it would hold banks and other lenders liable for any auto loans in their portfolio that are discriminatory. We were encouraged by today's announcement and hope it is the first step toward eliminating unfair interest-rate markups by auto dealers. Dealers should not be allowed to sell a consumer a higher interest rate than necessary. A flat-fee system would ensure that the dealers have an incentive to provide the lowest interest rate possible. In