Research & Policy

Replacing CFPB Director with Commission and changing the funding structure would weaken the bureau's accountability and independence. S. 737 would threaten the independence of the newly-enacted Consumer Financial Protection Bureau (CFPB) and would harm the ability of the Bureau to properly protect consumers from predatory and abusive financial practices. The bill, which would remove the independent funding mechanism and fundamentally...

CRL joins civil rights groups in asking Congress to take a comprehensive approach to GSE reform that addresses lending disparities and underserved borrowers.

Ben Bernanke, Chairman Board of Governors of the Federal Reserve System John Walsh, Acting Comptroller Office of the Comptroller of the Currency Sheila Bair, Chairman Federal Deposit Insurance Corporation John Bowman, Acting Director Office of Thrift Supervision Re: Withdrawal of Proposed Consent Orders Regarding Mortgage Servicing Illegalities Dear Federal Regulators of the Financial Institutions of the United States: The undersigned...

Dealer Markups Alone Cost Americans $25.8 Billion Over the Lives of their Loans Predatory practices in auto financing force consumers to struggle not only for a competitive and affordable loan, but for a fair and honest one. Finding a good deal is no longer based on the quality of the car or the creditworthiness of the customer, but rather the...

CRL and the National Consumer Law Center filed an amicus brief supporting the Federal Reserve's opposition to a TRO and preliminary injunction that would prevent new mortgage rules from going into effect.

Read the full report (PDF) >> Read the executive summary (PDF) >> Payday Loans, Inc.: Short on Credit, Long on Debt dispels the notion that a payday loan is a short-term debt. Although marketed and advertised as a quick solution to an occasional financial shortfall, the actual experience of payday loan borrowers reveals there is nothing quick about the loan...

Download this ruling (PDF) >> An 11th Circuit Court held that an arbitration clause was unenforceable in a suit charging BB&T with reordering debit card transactions to boost bank overdraft fees.

Banks' Foreclosure Bias Hurts Investors CRL's report—"Fix or Evict? Loan Modifications Return More Value Than Foreclosures"—shows that banks routinely choose foreclosure over modifying mortgages, even when fixing the loan would be better for loan investors. This bias to foreclose drains investments, including pension funds for retirement, and slows economic recovery. Download PDF of complete report here. What do investors think...

CRL, the National Association of Realtors, the National Association of Homebuilders, and the Consumer Federation of America sent a joint letter to federal regulators, urging them to avoid arbitrary high down payment requirements on mortgage loans. We argue that this would make buying a home more costly, lock out many first-time homebuyers, and short-circuit a recovery of the housing market...

Download Full Report (PDF) NCCOB REPORT SHOWS THAT CHANGES TO THE CONSUMER FINANCE ACT ARE UNNECESSARY AND UNWARRANTED "In light of the foregoing findings and after careful consideration of the following report and submissions from meeting participants, the Commissioner does not recommend any changes in the CFA [Consumer Finance Act], either to enhance industry revenue or increase consumer protections." The...

Most consumer finance companies turned a profit in 2008. While the rest of the financial world was reeling from the recession and the effects of poor lending practices, 80% of NC consumer finance companies turned a profit. Clearly, the law provides ample opportunity for consumer finance companies to profit. Consumer finance companies are demanding guaranteed profits. The CEO of a...

Recent proposals call for requiring prospective homeowners to make a 10-20 percent down payment when purchasing a home. This is seen--mistakenly--as "getting back to the way mortgages used to be made." In fact, low down payment home loans [i] have been a significant and safe part of the mortgage finance system for decades, bearing little resemblance to subprime and other...

The NCLC/CFA 2011 Refund Anticipation Loan Report Chi Chi Wu, National Consumer Law Center Contributing author: Jean Ann Fox, Consumer Federation of America? Executive Summary Refund anticipation loans (RALs) are one to two week loans made by banks, facilitated by tax preparers, and secured by the taxpayer's expected tax refund. RALs can carry triple digit APRs, and expose taxpayers to...

Press Release Full Pollster's Report A brief poll conducted in November 2010 to guage public opinion of a potential moratorium and other land-use restrictions on paydy lenders in San Jose found that most voters hold an unfavorable view of payday lending; many would like to see stronger restrictions on payday lenders and most believe that the City of San Jose...

CRL testifies that the biggest barrier to housing recovery is continuing foreclosures that could be stopped. Mortgage servicers are foreclosing unnecessarily, and the government has not yet used all the tools at its disposal to bring foreclosures under control and restore stability in the housing market.

Congress should promote a strong, engaged Consumer Financial Protection Bureau Consumer spending comprises 70% of the U.S. economy, so restoring consumer confidence and demand for products is vital to creating jobs. This is more likely to happen if consumers know that the financial marketplace is fair and safe for everyone.In addition, small businesses—which create 80% of our nation's new jobs—rely...

Download our complete hill brief Wall Street Led the Toxic Market 5 Facts You Should Know About Fannie Mae and Freddie Mac Additional Resources on the GSEs' Role in the Financial Crisis " Fannie, Freddie and the Foreclosure Crisis" – Center for Community Capital " Faulty Conclusions Based on Shoddy Foundations" – Center for American Progress Fact: The GSEs were...

In this letter to federal regulators, CRL and other national civil rights, labor and consumer organizations share their views on the regulation of securitizers of residential mortgage loans - specifically "qualified residential mortgages" or QRMs. The two points made by the letter: 1. Securitized loans should meet basic servicing standards to prevent unnecessary foreclosures 2. QRM standards should not include...

And guess what! That's a GOOD thing. Bank of America and Citibank cover debit card and ATM overdrafts only if their customers have signed up for more reasonably priced coverage, by linking their savings or line of credit to their checking account. Q: Why is this A GOOD THING? No more surprise high-cost overdrafts at the ATM or checkout for...

CRL and other advocates join mortgage industry leaders in urging regulators to carefully consider how they define mortgages that will be exempt from certain rules. An overly narrow definition could unnecessarily tighten access to home loans.

The National Consumer Law Center ("NCLC") respectfully submits the following comments on behalf of its low income clients, as well as Americans for Financial Reform, California Reinvestment Coalition, the Center for Responsible Lending, Consumer Action, Consumers Union, National Association of Consumer Advocates, National Community Reinvestment Coalition, National Fair Housing Alliance and the Neighborhood Economic Development Advocacy Project, regarding the Federal...

CRL and allies recommend that regulators include servicing standards when implementing financial reform. This letter also includes specific recommendations for defining a "qualified residential mortgage" that encourages sustainable home loans.

Detailed summary of provisions in Title XIV: "Mortgage Reform and Anti-Predatory Lending Act" Subtitles A-C: Mortgage Originations Contents: Timeline Key Definitions & Concepts "Qualified mortgage" "Residential mortgage loan" "Mortgage originator" Origination standards – originators (Subtitle A) Duty of care Originator compensation (including yield spread premiums) Steering Origination standards – loans (Subtitle B) Ability to Repay Prepayment penalties Other minimum standards...

Payday lenders survive by keeping customers caught in long-term debt, and before 2007, members of the American military service were not off-limits. In fact, payday loan stores clustered around bases, promising quick cash to military families in need, who, when they borrowed from a payday lender more often than not ended up caught in debt at triple-digit interest. Congress acted...

Senior policy counsel Julia Gordon testifies before a House Financial Services subcommittee that "it is high time for Congress and other policymakers to employ every tool at their disposal" to end the foreclosure crisis.