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Analysis: New State Data Show California Payday Lenders Continue to Rely on Trapping Borrowers in Debt
The California Department of Business Oversight (DBO) released data on October 3, 2014 showing the extent to which repeat lending comprises the bulk of payday loan activity.[i] Over 75% of all payday loan fees are from borrowers with 7 or more payday loans in 2013.
Attorneys General in 14 States Support More Accountability From For-Profit Colleges
Attorneys General representing states in the South, Midwest, Southwest and Northeast stand united in support of progressive reforms affecting for-profit college accountability.
Do Students of Color Profit from For-Profit College?
A post-secondary education is increasingly necessary in order to obtain a high-quality job and a lifetime of financial security and wealth-building opportunities. Many students finance their education through student loans because they see its value as an investment in their future. However, the value of that investment is questionable for those students enrolled in for-profit colleges.
2013 HMDA: Data Show People of Color Being Left Behind in Slowly Recovering Mortgage Market
The 2013 mortgage data submitted by lenders under the Home Mortgage Disclosure Act (HMDA) reflects a slowly recovering mortgage market that troublingly continues to under-serve important market segments.
CRL Comment on CFPB Complaint Narratives
This comment supports the CFPB's proposal to make consumer complaint narratives public, and emphasizes the need to do this in the context of student loans. It also provides recommendations on how the complaint intake process could be improved so that more borrowers would be able to submit problems.
CRL President Mike Calhoun Testifies Before Senate Banking Committee
On September 16, CRL President Mike Calhoun delivered testimony before the Senate Banking Committee at a hearing called “Examining the State of Small Depository Institutions.”
No Need for Higher MI Fees with QM
Consumers with lower credit scores often also have low down payments when purchasing a home. As a result, fees for mortgage insurance are added to payments. In these comments, CRL argues for these consumers, citing how higher fees would be another barrier to successful homeownership.
G-Fees Should be Lowered, not Raised
As the Federal Housing Finance Agency (FHFA) considers how best to manage mortgage risk CRL responded to its offer for comments. Discouraging fees that would create unnecessary barriers to homeownership, CRL called for a reduction in Guarantee Fees, also known as ‘g-fees’, and reminds FHFA of its duty to serve the entire market.
Comment on the Hearing on Financial Products for Students: Issues and Challenges
The Center for Responsible Lending (CRL) is pleased to provide a comment for the record on some of the issues covered in the Senate Banking Committee’s hearing, “Financial Products for Students: Issues and Challenges” held on July 31, 2014.
Issues and Outcomes Report: January to December 2013
In July 2014, CRL released an Issues and Outcomes Report that summarized financial regulations for the year 2013. This report provides a review of some of the financial products and services most in need of reform and an accounting and analysis of reform outcomes from January to December 2013.
Spotlight on Growing Threat of Predatory Payday Loans in CA
Center for Responsible Lending staff and consumer advocates based in Los Angeles gathered on October 10 to spotlight the threat posed by Predatory Payday Lending.
NC Attorney General Roy Cooper to Spotlight Impact of Abusive Lending at CRL’s Inaugural ‘Protecting Community Wealth Series’ Event
On November 6 at 5:00 p.m., the Center for Responsible Lending (CRL) and Duke University’s Sanford School of Public Policy will host North Carolina Attorney General Roy Cooper for CRL’s inaugural Protecting Community Wealth event, the first event in a series that will be hosted across the country focused on how regulators, policymakers and all Americans can work together to end abusive practices in financial markets and increase economic security for all people.
Report: California Payday Lenders Rely on Repeat Borrowers for Revenue, Contradicting Public Claims
A Center for Responsible Lending analysis of two new reports on the payday lending industry from the California Department of Business Oversight (DBO) shows that payday lenders, who advertise their products as a one-time quick fix for consumers facing a cash crunch, generate 76% of their revenue from borrowers who take out 7 or more loans per year. The DBO’s Annual report and Industry Survey come as the Consumer Financial Protection Bureau (CFPB) is considering new rules aimed at curtailing abuses in the payday lending industry. The Department of Defense also recently proposed new rules to further protect service members under the Military Lending Act, and Members of Congress have introduced a bill to cap interest rates on consumer credit products at 36%.
For-profit colleges leave African-American and Latino students with poor educational outcomes, unmanageable debt
For-profit college attendees are more likely to incur unmanageable student loan debt and be unable to graduate than their peers attending other schools, according to new research released today by the Center for Responsible Lending. African-American and Latino students in particular have a high risk of experiencing these poor outcomes at for-profit colleges, which have a long record of engaging in deceptive practices to pressure students to enroll.
Federal Appeals Court Upholds New York Ruling on Internet Payday Loans Rejects Industry Misuse of Tribal Sovereignty
The Second Circuit Court of Appeals affirmed an earlier decision by the District Court for the Southern District of New York.
In August 2013, the State of New York issued cease-and-desist orders to more than 35 payday lenders offering and making internet loans to state residents at annual interest rates in excess of 300 percent – more than 10 times higher than what is permitted by New York state law. Beyond tribal lenders, these loans also included foreign ones with stateside headquarters where no interest rate caps existed for short-term loans. New York officials also alerted banks and other financial services companies of the illegal activity and asked them to ensure they were not facilitating electronic transfers of illegal loans.
Two payday lenders associated with two federally-recognized Indian Tribes subsequently sued New York, seeking to prevent the state’s demands for compliance with the law. Instead, the District Court decided that New York’s actions were appropriate.
New Data Shows Important Market Segments Remain Locked-out of Conventional Mortgages in Slowly Recovering Housing Market
The 2013 Home Mortgage Disclosure Act (HMDA) data confirms a persistent lack of access to the conventional mortgage market for African-Americans, Latinos, and middle class families.