Research

As Congress considers the $700 billion bailout proposal, some argue that if the government acquires mortgage-backed securities (MBS) that include distressed loans, the government will have the right to modify those loans to prevent foreclosures. Unfortunately, this simply isn't true. Just as corporate bond holders have no right to control the bond issuer's management decisions, so too do MBS holders...

New Foreclosure and Spillover Projections We now project that almost 2.2 million subprime foreclosures will occur primarily in late 2008 through the end of 2009, up from our original 1.1 million estimate made in 2006. Additionally we estimate that 40.6 million homes in neighborhoods surrounding those foreclosures will suffer price declines averaging over $8,667 per home and resulting in a...

New Foreclosure and Spillover Projections We now project that almost 2.2 million subprime foreclosures will occur primarily in late 2008 through the end of 2009, up from our original 1.1 million estimate made in 2006. Additionally we estimate that 40.6 million homes in neighborhoods surrounding those foreclosures will suffer price declines averaging over $8,667 per home and resulting in a...

Any Real Financial Solution Must Stop Foreclosures The government's proposed bailout plan is a $700 million gift to the financial industry that comes with no accountability and will do nothing to stop millions of foreclosures. Under the Paulson plan, the government will take ownership of bad investments, not individual loans. Consider these facts: An estimated 2.3 million foreclosures will occur...

Proposed financial bailout bill will not help people save their homes. The government proposes to purchase hundreds of billions of dollars of illiquid mortgage-related assets as a response to this country's financial crisis. The vast majority of these assets are securities issued privately through Wall Street that are backed by subprime or Alt A home loans, meaning that the government...

Allowing the Federal government to purchase illiquid mortgage-backed securities (MBS) has been presented as a comprehensive solution to the economic crisis, but it has a serious flaw. This plan will NOT increase loan modifications that prevent foreclosures. Large-scale loan modifications—adjusting the terms of a loan to make it affordable—is the only way to prevent massive foreclosures still ahead. Under the...

Over 700 payday lenders charging up to 459% annual percentage rate (APR) for a two-week loan are located throughout Arizona; with the highest concentrations per capita in Pinal, Mohave, and Maricopa Counties. A typical Arizona borrower pays an estimated $516 in fees for a $325 payday loan and still owes the $325 in principal. Overall, payday lending costs Arizona families...

CRL has uncovered substantial evidence that IndyMac Bank engaged in unsound and abusive lending during the mortgage boom, routinely making loans without regard to borrowers' ability to repay. CRL interviews with former employees and lawsuits in 10 states indicate that IndyMac: pushed through loans based on bogus appraisals and income data that exaggerated borrowers' finances, worked hand-in-hand with mortgage brokers...

HR 6076: Home Retention and Economic Stabilization Act Why is H.R. 6076 needed? Approximately 20,000 subprime foreclosures are starting every week, and the situation is projected to get worse. The rate of foreclosures continues to accelerate, despite the efforts of programs like HOPE NOW, which encourage lenders and servicers to avoid unnecessary foreclosures by voluntarily modifying loan terms to make...

Read the executive summary (pdf) >> Unfair bank practices threaten to shred the safety net of Social Security for older Americans New CRL research finds that unauthorized overdrafts strip fees from Americans 55 and older at the level of $4.5 billion per year. Nearly $1 billion of that comes from people who are heavily dependent on Social Security income. CRL's...