Research

Most consumer finance companies turned a profit in 2008. While the rest of the financial world was reeling from the recession and the effects of poor lending practices, 80% of NC consumer finance companies turned a profit. Clearly, the law provides ample opportunity for consumer finance companies to profit. Consumer finance companies are demanding guaranteed profits. The CEO of a...

Download Full Report (PDF) NCCOB REPORT SHOWS THAT CHANGES TO THE CONSUMER FINANCE ACT ARE UNNECESSARY AND UNWARRANTED "In light of the foregoing findings and after careful consideration of the following report and submissions from meeting participants, the Commissioner does not recommend any changes in the CFA [Consumer Finance Act], either to enhance industry revenue or increase consumer protections." The...

Recent proposals call for requiring prospective homeowners to make a 10-20 percent down payment when purchasing a home. This is seen--mistakenly--as "getting back to the way mortgages used to be made." In fact, low down payment home loans [i] have been a significant and safe part of the mortgage finance system for decades, bearing little resemblance to subprime and other...

Press Release Full Pollster's Report A brief poll conducted in November 2010 to guage public opinion of a potential moratorium and other land-use restrictions on paydy lenders in San Jose found that most voters hold an unfavorable view of payday lending; many would like to see stronger restrictions on payday lenders and most believe that the City of San Jose...

Read the full, original report or executive summary from February 2011. Watch our 4.5 minute video of Senior Researcher Josh Frank discussing the findings. Updated CARD Act Research (June 2011): Clearer Pricing Not Raising Rates CRL's research shows that the Credit CARD Act of 2009 has reversed much of the unclear pricing on credit cards, without leading to higher rates...

Congress should promote a strong, engaged Consumer Financial Protection Bureau Consumer spending comprises 70% of the U.S. economy, so restoring consumer confidence and demand for products is vital to creating jobs. This is more likely to happen if consumers know that the financial marketplace is fair and safe for everyone.In addition, small businesses—which create 80% of our nation's new jobs—rely...

Download our complete hill brief Wall Street Led the Toxic Market 5 Facts You Should Know About Fannie Mae and Freddie Mac Additional Resources on the GSEs' Role in the Financial Crisis " Fannie, Freddie and the Foreclosure Crisis" – Center for Community Capital " Faulty Conclusions Based on Shoddy Foundations" – Center for American Progress Fact: The GSEs were...

CRL and other advocates join mortgage industry leaders in urging regulators to carefully consider how they define mortgages that will be exempt from certain rules. An overly narrow definition could unnecessarily tighten access to home loans.

CRL and allies recommend that regulators include servicing standards when implementing financial reform. This letter also includes specific recommendations for defining a "qualified residential mortgage" that encourages sustainable home loans.

Detailed summary of provisions in Title XIV: "Mortgage Reform and Anti-Predatory Lending Act" Subtitles A-C: Mortgage Originations Contents: Timeline Key Definitions & Concepts "Qualified mortgage" "Residential mortgage loan" "Mortgage originator" Origination standards – originators (Subtitle A) Duty of care Originator compensation (including yield spread premiums) Steering Origination standards – loans (Subtitle B) Ability to Repay Prepayment penalties Other minimum standards...