Research

In this analysis of the fifth report by the Monitor of the National Mortgage Settlement, the Center for Responsible Lending concludes that borrowers have benefitted from more transparent oversight of the negotiated servicing practices by participating banks. With more than $51 billion in gross benefits have been provided to 643,000 borrowers, CRL also poses questions on outstanding items.

The financial harm caused by over 12.5 million foreclosures from 2007-2012 is the focus of this brief, the fifth in a series of updated on related findings. Between 2007 and 2012, over 12.5 million homes have gone into foreclosure. These foreclosures directly harm the families that experience them, obviously, and they also have negative effects that extend to the neighborhood...

As various proposals call for mortgage lending reform, CRL speaks to the importance of preserving broad access to credit. This fact sheet also explains how government-mandated down payments would deny many consumers the chance to become first-time homebuyers.

Although the Military Lending Act has resulted in significant improvements, Service members continue to be the target of predatory lenders. In 2012, members of the military filed 61,642 complaints with the Federal Trade Commission's Military Sentinel system. Twenty-two percent of complaints filed by enlisted members were about debt collection, banks/lenders and credit cards. The Department of Defense (DoD) invited comments...

Since 2008, 1.4 million homeowners have benefited from the National Foreclosure Mitigation Counseling Program. Additionally, over 39,000 of these consumers have also received mortgage-related legal assistance. Yet more efforts are still needed. This 2013 document identifies the nation's "areas of greatest need".

On July 24, 2013, Rebecca Borné, senior policy counsel for CRL, testified before the Senate Special Committee on Aging on how payday lending affects senior citizens. In her testimony, Rebecca made the following points: CRL Testimony Watch Rebecca's testimony. The Payday Trap Watch Annette's testimony. Payday loans are designed to create a long-term debt trap. Payday loans cause borrowers severe...

Michael Calhoun, CRL President, testified before a House Financial Services Committee hearing on housing finance reform and the future of homeownership. This testimony shares CRL's belief that all proposals preserve access to affordable mortgage credit.

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...

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...