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Tag Archives: Center for Responsible Lending

Survey Shows Strong Support for Financial Regulation

As the calendar approaches September 15, marking the anniversary of the collapse of Lehman Brothers, the nation is reminded of that historical event which severed the very fabric of our financial system. It's been five years since that fateful day, and the Center for Responsible Lending (CRL) says Americans--regardless of political party, age, race, or locale--overwhelmingly support financial regulation, and in particular, increased consumer protections.

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Report: Foreclosure Counseling Services Need Expanding

Since its debut in 2007, the National Foreclosure Mitigation Counseling Program, established by Congress to address the housing crisis, has reached more than 1.4 million homeowners, according to the Center for Responsible Lending. However, the Center suggests there are plenty of homeowners still in need in still-struggling parts of the country. According to the Center, 21 towns in Texas are among those in the greatest need of additional foreclosure counseling services.

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CRL Warns Against Consumer Mortgage Choice Act

The Center for Responsible Lending (CRL) expressed opposition toward bill H.R. 1077, known as the Consumer Mortgage Choice Act, which would exclude loan originator salaries, insurance and taxes held in escrow, and loan level pricing adjustments by government agencies or GSEs when computing points and fees. In a letter to Congress, CRL argues that H.R. 1077 ""promotes steering borrowers into more expensive loans"" and ""creates new loopholes that would allow loans with higher costs and fees to improperly meet"" QM standards.

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Lenders, Homeowner Advocates Unite Behind Mortgage Debt Relief Act

The Center for Responsible Lending, a nonprofit group dedicated to protecting consumers from predatory lending practices, and the Financial Services Roundtable, a group of representatives from the nation's largest financial institutions, have come together to ask Congress to extend the Mortgage Forgiveness Debt Relief Act, which will otherwise expire at the end of this year. The two groups argue that if lawmakers fail to act, it will make it difficult for struggling homeowners to accept short sale, and even loan modification, offers.

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Foreclosure Crisis Isn’t Even Halfway Over: Study

The foreclosure crisis has had a long and destructive run - five years and counting, with millions put out of their homes. According to the Center for Responsible Lending (CRL), we're not even halfway through the devastation. The organization's analysis of 27 million mortgage loans originated over a five-year period found that 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.

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Report: Mods Often More Beneficial Than Foreclosures for Investors

A push for servicers to implement principal write-downs and provide screening for as many modification options as possible before proceeding to foreclosure has been met with stiff resistance from servicers and some lawmakers. Meanwhile, the number of loan modifications pales in comparison to the number of foreclosures. But new data suggests that modifications and even write-downs in certain cases might actually be more beneficial to investors as well as struggling borrowers.

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California Senators Reintroduce Bill to Prevent Wrongful Foreclosures

With 305,000 California borrowers receiving notices of default and more than 170,000 families losing their homes to foreclosure in 2010, Sen. Mark Leno (D-San Francisco) and Senate President Pro Tem Darrell Steinberg (D-Sacramento) are again pushing for legislation that would help prevent what they deem as ""wrongful foreclosures."" Their California Homeowner Protection Act would require that borrowers be given a decision on a loan modification before the foreclosure process can begin.

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With Millions of Foreclosures on Horizon, Should States Mandate Mods?

According to the Center for Responsible Lending, since the housing crisis took hold, 2.5 million homeowners have already lost their homes and another 5.7 million are at risk of foreclosure. It's projected that between 10 and 13 million foreclosures will have occurred by the time this crisis abates. The Center argues that the power to stop unnecessary foreclosures and stabilize local housing markets lies with state legislatures. The group says lawmakers should impose mandatory loss mitigation standards for all servicers prior to foreclosure.

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