Policy & Legislation

Today's financial troubles were triggered by a massive failure of home loans—a foreclosure epidemic that will continue to cost all homeowners billions of dollars each year. To avoid repeating this crisis, the final financial reform legislation must include three major elements: Better lending standards: Both the House and Senate bills (H.R. 4173 and S. 3217, respectively) include crucial minimum mortgage...

What the CFPB Really Means for Washington and Americans Myth: The proposed agency would duplicate the work of existing agencies and increase regulatory burden on businesses. FACT: The CFPB would consolidate and streamline existing functions to reduce regulatory burden. The new Agency would consolidate consumer protection rulemaking and enforcement that is now scattered across several agencies, creating unnecessary conflicts and...

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...

Foreclosure Prevention Is Good Policy Excessive foreclosures of unsustainable loans are at the root of the financial crisis. Although devastating for homeowners, the impacts of foreclosures are much broader. Neighbors lose property value; municipalities lose tax revenues; and the economy loses needed purchasing power. Any solution to the current crisis, therefore, must address the problem of runaway foreclosures. While mass...

Executive Summary Like payday loans, car title loans are marketed as small emergency loans, but in reality these loans trap borrowers in a cycle of debt. Car title loans put at high risk an asset that is essential to the well-being of working families -- their vehicle. A typical car title loan has a triple-digit annual interest rate, requires repayment...