Research

Presented by Kathleen Keest, Senior Policy Counsel-Center for Responsible Lending at the symposium "The Subprime Housing Crisis: Interdisciplinary Policy Perspectives" October 10-11, 2008 at The University of Iowa, Iowa City, IA In many respects, events have overtaken this conference. In 2006, CRL released a study that projected 2.2 million foreclosures of subprime mortgages. [1] But by this spring, Credit Suisse...

Report Author: Josh Frank As of Jan 12, 2010, the Federal Reserve has effectively ended the "pick-a-rate" practice and the use of variable rate floors. These two abuses are featured in the 12/10/09 Dodging Reform report. Download the full report >> Download the executive summary >> Download table of abusive practices >> CRL's new report, Dodging Reform, finds: Issuers have...

Did you know that 6 out of 10 people who received subprime loans during the height of the lending boom could have qualified for a lower-cost mortgage--and it was completely legal? The vast majority of subprime loans made by mortgage brokers or loan officers came with a "yield-spread premium" – a kickback that brokers received from lenders in exchange for...

Did you know that 6 out of 10 people who received subprime loans in 2006 could have qualified for a lower-cost mortgage, but didn't get the better deal because their mortgage broker earned a "kickback" for steering them to the higher-cost loan. And all this was completely legal. The Federal Reserve Board is now deciding whether to fix this by...

Michael Calhoun, president of the Center for Responsible Lending, testified before the U.S. Senate Committee on Banking, Housing & Urban Affairs on Tuesday, November 17, 2009. Mr. Calhoun offered support for the FAIR Overdraft Protection Act, introduced by Senator Christopher Dodd, as urgent and necessary reform for abusive bank overdraft fees.

The most common type of large loan held by Americans is the loan that finances their car—yet a recent mark-up of the Consumer Financial Protection Agency (CFPA) bill would allow auto dealers to be exempt from basic oversight that could save American families billions. Many dealers are like loan brokers: they typically write the car loans, then sell the loan...

And guess what! That's a GOOD thing. Bank of America and Citibank cover debit card and ATM overdrafts only if their customers have signed up for more reasonably priced coverage, by linking their savings or line of credit to their checking account. Q: Why is this A GOOD THING? No more surprise high-cost overdrafts at the ATM or checkout for...

Read the full analysis (PDF) >> Download this summary (PDF) >> Reckless and abusive lending practices have left California victim to a foreclosure crisis with catastrophic consequences for families, communities and the state economy. Recent assessments and reports from policy analysts, industry insiders and the media suggest that the catastrophe is over: a bottoming of the housing and stock markets...

Why do we need the Consumer Financial Protection Agency? First and foremost, we need accountability. The truth is, none of the responsible agencies took action to stop the reckless lending and bad risk management that triggered the economic crisis. When seven different agencies oversee financial institutions, it's easy to create loopholes and point fingers at someone else. The CFPA will...

U.S. House and Senate proposals promise significant reform Regulators have failed to stop our nation's financial institutions from moving from a policy of discouraging overdrafts to that of encouraging and maximizing overdrafts to drive up fees. The Overdraft Protection Act of 2009, H.R. 3409, introduced by Congresswoman Carolyn Maloney in October 2009, would make meaningful reform with measures similar to...