Research

The NCLC/CFA 2012 Refund Anticipation Loan Report Read the report >> Chi Chi Wu, National Consumer Law Center Contributing author: Jean Ann Fox, Consumer Federation of America ? Executive Summary Refund anticipation loans (RALs) are one to two week loans made by banks, facilitated by tax preparers, and secured by the taxpayer's expected tax refund. RALs can carry triple digit APRs, and expose taxpayers to the risks of unpaid debt if their refunds do not arrive as expected. This is the twelfth annual report on the RAL industry from the National Consumer Law Center and Consumer Federation of...

Some 250 advocates urged four federal regulators to end the predatory practice of bank payday lending on February 22, 2012. The CFPB, OCC, FDIC and Federal Reserve Board can and should stop Wells Fargo, US Bank, Fifth Third Bank and Regions Bank from trapping their customers in long-term debt at 400% annual interest. Maps, video, slides and the latest news on bank payday lending. The Honorable Ben S. Bernanke Chairman Board of Governors, Federal Reserve System 20th Street and Constitution Avenue, NW Washington, DC 20551 The Honorable Richard Cordray Director Consumer Financial Protection...

The Consumer Financial Protection Bureau (CFPB), the nation's first federal agency to focus solely on consumer financial issues, reached an important milestone. The agency's first report to Congress was delivered to the U.S. Senate Banking Committee on January 31 by its recently-appointed Director, Richard Cordray. Speaking to the committee, Cordray said in part, "We plan to use all of the tools available to us to ensure that everyone respects and follows the rules of the road. Where we can cooperate with financial institutions to do that, we will; when necessary, however, we will not hesitate...

On July 21, the CFPB will be a cop on the beat to enforce the laws on credit cards, mortgages, student loans, prepaid cards, and other kinds of financial products and services. This report from the Bureau summarizes in one place what they've been up to.

As federal regulators consider setting down-payment standards on new mortgages, this research shows such rules could push 60% of creditworthy borrowers into high-cost loans or out of the market altogether. A proposal by regulators to define a high-quality mortgage as one with at least a 10% or 20% down payment would hobble a healthy segment of the housing market. While higher down payments do result in fewer defaults, the payoff is small relative to the number of creditworthy households who could be shut out of the market. The results are particularly striking for African-American and Latino...

Five years into the foreclosure crisis, borrowers across the country are still struggling with their mortgage payments, and are seeking out the help of housing counselors to help them manage their finances and guide them through the loan modification process. Between 2008 and 2011, the National Foreclosure Mitigation Counseling Program assisted nearly 1.2 million homeowners with foreclosure counseling, and provided mortgage-related legal assistance to more than 32,000 homeowners [1]. Below, we provide an analysis of "Areas of Greatest Need," based on the methodology used in previous rounds of...

Short-term loan carries 365%-plus APR At least four large banks are making payday loans directly to their customers, and more plan to do so. Bank payday loans trap borrowers in debt, like the street corner payday loans that strip $4.5 billion per year from Americans. Bank payday loans often send borrowers into financial devastation. Bank payday lending circumvents state consumer protections; undermines the Pentagon's protection of military personnel; and harm economically vulnerable communities and families. " I was stuck in payday loan hell when I banked with Wells Fargo." - User of Wells...

On November 17, 2011, Center for Responsible Lending published new research that shows that the nation is not even halfway through the foreclosure crisis. Lost Ground, 2011: Disparities in Mortgage Lending and Foreclosures finds that: (1) foreclosure rates are closely tied to harmful loan terms, and (2) the majority of foreclosures have been experienced by white households, though African-American and Latino families have suffered a disproportionate share of home losses. Differences in income and credit scores do not explain why the foreclosure crisis has hit communities of color harder. For...

"Lost Ground, 2011" is based on an analysis of 27 million mortgages made over a five-year period. Here are our top-line findings: The nation is not even halfway through the foreclosure crisis. 6.4 percent of mortgages made between 2004 and 2008 have ended in foreclosure, and an additional 8.3 percent are at immediate, serious risk. Foreclosure patterns are strongly linked with patterns of risky lending. Foreclosure rates are consistently worse for borrowers who received high-risk loan products that were aggressively marketed before the housing crash. The majority of people affected by...

Read our report -- Lost Ground, 2011: Disparities in Mortgage Lending and Foreclosures Completed Foreclosures and Serious Delinquencies (2004 – 2008 mortgage originations) STATES By borrower race & ethnicity By borrower income By neighborhood income By neighborhood minority concentration METROPOLITAN AREAS By borrower race & ethnicity By borrower income By neighborhood income By neighborhood minority concentration