Comment Letter

The Center for Responsible Lending (CRL) filed this comment in response to FHFA's proposed evaluation guidance for the Duty to Serve Rule. The evaluation guidance is the method for FHFA to assess Fannie Mae and Freddie Mac's (the Enterprises) Duty to Serve Underserved Markets Plans. The strength and clarity of the evaluation guidance will greatly inform the Enterprises' plans. A successful evaluation process is inextricably linked with a successful plan development process. These comments provide recommendations with respect to public input and transparency, assessing the content of the plans...

Despite significant concerns raised by a number of interested parties—including hundreds of advocacy groups, state regulators, and a bipartisan group of Members of Congress—the OCC is moving forward with its fintech charter proposal. This comment letter asserts that the OCC does not have the legal authority to charter non-depositories, that a national bank charter for non-depository fintech institutions will facilitate consumer harm through preemption of strong state laws, and that federal supervision from the OCC is not a substitute for critical safeguards that exist at the state level.

The Federal Deposit Insurance Corporation's (FDIC) proposed guidance provides a framework that will require banks to place more stringent requirements on the institutions that they conduct business with. However, as written, the proposed guidance will still enable consumer harm and allow FDIC-supervised institutions to engage in risky relationships with third parties via rent-a-bank lending. We are deeply concerned about the risk this could create for the Federal Deposit Insurance fund, the reputation of FDIC-insured banks, and the FDIC itself, as well as the adverse impact on consumers.

The Federal Housing Finance Agency (FHFA) should consider the impact credit risk transfer structures might have on borrowers. In bringing in private capital, FHFA should be careful to ensure that FHFA does not exchange access to credit or borrower protections for the capital the private market offers. We are concerned that the credit risk transfer programs have the potential to: Increase prices for certain borrowers which would effectively limit access to credit for some creditworthy borrowers. Recent pricing changes by mortgage insurance (MI) companies illustrate this risk. These risks are...

The Consumer Financial Protection Bureau’s (CFPB or the Bureau) proposed rule to address payday, vehicle title, and other certain high-cost installment loans marks the culmination of over four years of extensive information gathering and data analysis by the Bureau. We thank and commend the Bureau for this work, which has resulted in a robust record of evidence that strongly supports taking regulatory action to address unfair and abusive practices in this market. As the Bureau’s proposal makes clear, the record supports a rule rooted in the fundamental principle that lenders should make a...

The California State Legislature and the California Attorney General, Kamala Harris, both submitted comments to the Consumer Financial Protection Bureau in favor of strengthening the proposed rule on payday and car-title lending. Download both of the letters with the link above to read the key points laid out to curb these predatory lending practices.

The Consumer Financial Protection Bureau’s (CFPB or the Bureau) proposed rule to address payday, vehicle title, and other certain high-cost installment loans marks the culmination of over four years of extensive information gathering and data analysis by the Bureau. We thank and commend the Bureau for this work, which has resulted in a robust record of evidence that strongly supports taking regulatory action to address unfair and abusive practices in this market. As the Bureau’s proposal makes clear, the record supports a rule rooted in the fundamental principle that lenders should make a...

We are encouraged that the Department's proposal would generally require all providers of distance education to obtain state authorization in each state where they intend to enroll students. However, we have concerns that distance education students could still be subject to weaker protections under the proposed rule, for the following reasons: The proposal would permit state authorization through the use of interstate reciprocity agreements that could restrict a state's authority to protect its own students and students' ability to protect themselves The proposal would permit providers to...

This letter suggests improvements to the rule that would amend the Borrower Defense to Repayment provision of the Higher Education Act (HEA) in order to ensure that students and taxpayers will not have to bear the economic burdens that arise when higher learning institutions make misrepresentations and fail to provide an adequate education to students. CRL applauds the Department for proposing a rule that requires schools to provide financial restitution for their actions and omissions, provides a process for loan discharge without individual claim submission, and addresses mandatory pre...

The Center for Responsible Lending strongly supports allowing former ITT students access to the Guaranty Fund. Over the past few years, CRL has been engaged in research and policy regarding for-profit institutions of higher education. During the 2016 legislative session, the Center for Responsible Lending submitted written testimony in support of SB 427, An Act Concerning Higher Education – Institutions of Postsecondary Education – Consumer Protect Provisions. Effective in a few short days, this bill provides critical front-end protections to Maryland students by ensuring that state students...