Research & Policy

CRL and other consumer groups comments to the Federal Reserve on proposed credit card rules related to the implementation of the Credit CARD Act and penalty rates and fee increases.

Auto dealers are heading to Capitol Hill seeking a special carve-out from the "Restoring American Financial Stability Act of 2010" (S. 3217), which aims to put an end to the reckless practices of Wall Street and the abusive and discriminatory tactics by finance companies of all stripes. In their search for a loophole, auto dealers claim that the bill will...

The need for mortgage relief continues to grow, but too often companies that promise mortgage assistance relief services (MARS) turn out to be scammers. CRL and its allies recently submitted comments to the Federal Trade Commission, which is considering tighter rules to ensure that people who pay for mortgage assistance actually have a fair chance of receiving help.

CRL and other consumer groups provide comment on the Federal Reserve's opt-in rule and the proposed changes to Regulation DD.

Provision Senate Bureau of Consumer Protection House Consumer Financial Protection Agency Administration Consumer Financial Protection Agency Presidentially Appointed Director Yes, confirmed by the Senate. Yes, confirmed by the Senate. Yes, confirmed by the Senate. Independent source of funding Yes, from the Federal Reserve Board budget. Yes, from the Federal Reserve Board budget. Yes, with fees on "entities and transactions" within...

Provision Senate Bureau of Consumer Protection House Consumer Financial Protection Agency Administration Consumer Financial Protection Agency Presidentially Appointed Director Yes, confirmed by the Senate. Yes, confirmed by the Senate. Yes, confirmed by the Senate. Independent source of funding Yes, from the Federal Reserve Board budget. Yes, from the Federal Reserve Board budget. Yes, with fees on "entities and transactions" within...

15 Fast Facts The magnitude of foreclosures and associated costs are daunting; the numbers tell the story. 1. Number of foreclosures initiated since 2007 6.6 million 2. Projected foreclosures during next 5 years Up to 12 million 3. Portion of all homeowners seriously delinquent on their mortgage 1 in 9 4. Portion of homes where owners owe more than property...

California's Rees-Levering Act entitles car loan borrowers to receive information on the amount they must pay to recover their car when it is repossessed. This represents an important, and easy to satisfy, legal protection for car loan borrowers who otherwise may find it hard to determine the amount of payments and fees the lender claims are owed. U.S. Bank successfully...

Full Session Law This legislation has two major components: (1) it extends the reach of the State Home Foreclosure Prevention Project, and (2) it modifies the points and fees trigger for determining that a mortgage is high-cost. Extending the State Home Foreclosure Prevention Project (SHFPP) Since 2008, the SHFPP has helped over 4,200 homeowners with subprime loans avoid foreclosure in...

In a letter to the Treasury Department, the Department of Defense (DoD) announced its support for financial reform, including the creation of a Consumer Financial Protection Agency, to protect its service members and their families from predatory car dealers. A DoD poll of its financial counselors found that the majority had counseled service members on issues such as "bait and...

Julia Gordon testifies that there's no "silver bullet" for stopping foreclosures, and that's why we need multiple approaches to improve HAMP and effective actions beyond HAMP. For questions about this testimony, contact Julia Gordon at julia.gordon@responsiblelending.org or (202) 349-1878.

Read our report (PDF) >> Our nation's largest banks extract billions of dollars in fees from their customers each year through abusive overdraft loan programs. Over the last ten years, these programs developed and proliferated under the Office of the Comptroller of the Currency (OCC), the national banks' primary regulator. The OCC recognized problems with the systems early on but...

Download our report "Mainstream Banks Making Payday Loans" (PDF) UPDATE April 2010. A spokesman for the Office of the Comptroller of the Currency told a reporter that the loans described in this report are not payday loans -- that the OCC has no problem with banks making them. "It's not a payday loan. It's available through banks and bank branches...

Read our report (PDF) >> Our nation's largest banks extract billions of dollars in fees from their customers each year through abusive overdraft loan programs. Over the last ten years, these programs developed and proliferated under the Office of the Comptroller of the Currency (OCC), the national banks' primary regulator. The OCC recognized problems with the systems early on but...

The Federal Reserve issued rules in November 2009 related to bank overdraft practices. These rules are limited and do not address the fundamental problems with today's overdraft systems–- namely, their high cost and the frequency with which fees are charged. Americans pay $23.7 billion per year in overdraft fees, most commonly due to small debit card overdrafts that institutions could...

When homeowners are at risk of losing their home to foreclosure, the last thing they need is an extra tax bill. Congress passed the 2007 Mortgage Forgiveness Debt Relief Act ("the 2007 Act") specifically to avoid imposing extra taxes on distressed families, but as currently written, the law doesn't work. In passing the 2007 Act, Congress recognized that taxing this...

Julia Gordon, CRL Sr. Policy Counsel, testifies before the Financial Crisis Inquiry Commission on the causes and effects of the foreclosure crisis and why we need more and better responses. For questions about this testimony, contact Julia Gordon at julia.gordon@responsiblelending.org or (202) 349-1878.

H1058 significantly increases the amount of equity in their home that a homeowner can protect from creditors. This allows individuals with debt to keep their homes rather than having their home sold to satisfy a judgment. The law raises the NC homestead exemption from $18,500 to $35,000 per individual ($70,000 per married couple). If the homeowner is 65 or older...

Report Author: Josh Frank As of Jan 12, 2010, the Federal Reserve has effectively ended the "pick-a-rate" practice and the use of variable rate floors. These two abuses are featured in the 12/10/09 Dodging Reform report. Download the full report >> Download the executive summary >> Download table of abusive practices >> CRL's new report, Dodging Reform, finds: Issuers have...

Julia Gordon, CRL Senior Policy Counsel, testifies before the U.S. House of Representatives Financial Services Committee on why we need a stronger, multi-pronged approach to stopping the foreclosure epidemic. For questions about this testimony, contact Julia Gordon at julia.gordon@responsiblelending.org or (202) 349-1878.

Did you know that 6 out of 10 people who received subprime loans during the height of the lending boom could have qualified for a lower-cost mortgage--and it was completely legal? The vast majority of subprime loans made by mortgage brokers or loan officers came with a "yield-spread premium" – a kickback that brokers received from lenders in exchange for...

The latest mortgage data through second quarter 2010 show that while mortgage companies have stepped up their efforts outside the HAMP program, loan repairs are still dwarfed by the foreclosure epidemic. The chart below vividly illustrates that Federal efforts to stop foreclosures through the Home Affordable Modification Program (HAMP) simply aren't keeping pace with the foreclosure epidemic. Notes on chart...