Research

Dual tracking is the servicer practice of simultaneously pursuing loan modifications and foreclosure proceedings. This chart offers a side-by-side comparison and analysis of how the National Mortgage Settlement, the California Homeowner Bill of Rights, and related rules from the Consumer Financial Protection Bureau have each taken steps towards eliminating this practice. The comparison includes variances in rule applications, borrower outreach requirements, denial notices, and more.

The Center for Responsible Lending responds to a recent National Bureau of Economic Research working paper "The Vulnerability of Minority Homeowners in the Housing Boom and Bust," outlining flaws in the paper's analysis and methodology. Most importantly, CRL disputes the authors' conclusions that disparate default rates should call into question the value of homeownership in addressing the racial wealth gap.

A key mortgage reform included in the Dodd-Frank Wall Street Reform and Consumer Protection Act is at risk of being weakened by new legislation submitted during the 113th Congress. House bill H.R. 1077 would create loopholes in the definition of "Qualified Mortgage" and, as a result, allow higher-fee mortgages to improperly gain Qualified Mortgage status. The Qualified Mortgage designation is intended to benefit borrowers by restricting these mortgages from having risky features such as high origination fees. This fact sheet highlights the fees and loopholes that would hurt America's economy...

This brief, co-authored by CRL and Consumers Union, examines recent legal and regulatory efforts to help troubled homeowners avoid foreclosure. These include rules by the Consumer Financial Protection Bureau to standardize how servicers act and communicate with homeowners, the National Mortgage Settlement negotiated with major servicers by 49 state Attorneys General, California's Homeowner Bill of Rights, and other state laws. The brief then recommends ways for state policymakers to close gaps in these efforts to prevent unnecessary foreclosures.

SB 515 includes three principal reforms California payday loans: it caps the number of payday loans per borrower at four per year; extends the minimum term of a payday loan, so that borrowers will have more time to accumulate the amounts necessary to repay it; and requires all lenders to apply standardized underwriting guidelines to ensure that borrowers have a reasonable ability to repay their loans.

California payday loan borrowers get caught in a cycle of repeat borrowing of 459% Annual Percentage Rate (APR) loans. Reforms are necessary to ensure that payday loans serve their advertised purpose and better protect consumers. SB 515 proposes a series of reforms to allow payday loans to better serve their advertised purpose while making the loans safer for consumers. Read the bill summary >>

Dodd-Frank Financial Reform charged the Consumer Financial Protection Bureau (CFPB) to set basic mortgage definitions that would be easily understood by lenders and borrowers alike. In January 2013, CFPB issued the Qualified Mortgage (QM) rule that requires full documentation, the elimination of risky mortgage terms and limits up-front fees to no more than three points on 30 year mortgages. Now, as other regulators move to define Qualified Residential Mortgages (QRMs), CRL urges for the two rules to use the same standards. In this issue brief, CRL warns that different standards would create...

As the U.S. Senate Banking Committee prepared for a March 20, 2013 vote on the reappointment of CFPB Director Richard Cordray, CRL urged committee members to swiftly act and confirm him.

The Monitor of the National Mortgage Settlement recently detailed progress on the $20 billion obligation of the nation's five largest mortgage servicers, under their agreement with 49 state Attorneys General and the Administration. This report, Ongoing Implementation, reported on efforts made over a 10-month period, March 1, 2012 to December 31, 2012, towards home retention, loan modifications, and other assistance. In this policy brief, CRL offers an independent analysis of the Monitor's findings and also poses remaining questions on issues not yet addressed.

Banks pitch payday loans as short-term borrowing that allows their customers to deal with a financial emergency, repay the loan, and move on. In fact, CRL's research shows that their triple-digit interest rate loans trap borrowers in a long-term cycle of repeat loans. Read the full report Read the summary Banks continue to claim that their payday products are intended for short-term emergencies, but this report shows that short-term loans are not typical. Although some participating banks have made small, recent changes in the product, bank payday loans are continuing to trap borrowers in high...