NCRC

Current & Former Federal Reserve Consumer Advisory Council Proposes Standalone Consumer Protection Agency

Group of Experts Federal Reserve Relied on for Consumer Advice Says Strong Consumer Protection Won’t Happen Without Independent Agency

Washington, DC – Nineteen current and former members of the Federal Reserve’s Consumer Advisory Council (CAC) today sent a letter to Senator Dodd calling for a standalone Consumer Financial Protection Agency not housed at the Federal Reserve or any other banking regulatory agency. Considering the failure of the agencies, "We think it would be imprudent to give the Federal Reserve or any other existing agency primary consumer protection responsibilities," says the letter. "The Federal Reserve has its hands full with responsibilities relating to safety and soundness and monetary policy. Consumers will be served only by having the CFPA as an independent agency where the primary responsibility is consumer protection. We urge you reconsider your proposal for the CFPA to be within any other agency."

Burden To Borrower Is Modest & Ensures Access To Responsible Credit

Washington DC — David Berenbaum, Chief Program Officer, National Community Reinvestment Coalition, issued the following statement today about the Federal Housing Administration’s changes to its mortgage program:

“The changes announced today by the FHA represent an attempt to navigate a prudent course without negatively impacting access to credit or contributing to a further slowing of the housing market in communities of color. While borrowers will bear more of the costs of the government insurance program through higher premium charges, the additional revenue will help ensure that FHA stays solvent. The burden to the individual borrower is modest and should ensure, overall, that borrowers have access to responsible credit. While some less credit worthy borrowers will need higher down payments, this is a necessary move in markets where a decline in home value can wipe out a new buyer’s equity within weeks after the settlement.  

Washington, DC – Today, John Taylor, president & CEO of the National Community Reinvestment Coalition made the following statement in reaction to the news that key senators are considering housing the Consumer Financial Protection Agency at the Federal Reserve:

“The Federal Reserve is the last place an agency designed to protect consumers should be housed. It will be more waste of taxpayers’ money because we’ll have to pay for the appearance of protection without getting any."

Washington, DC – Last Friday, President Obama announced a $1.5 billion commitment to help alleviate some of the foreclosure and housing problems facing five states, Arizona, California, Florida, Michigan and Nevada.

John Taylor, President & CEO of the National Community Reinvestment Coalition, applauded the Administration for focusing on these states, which have each experienced major declines in home values due to massive numbers of foreclosures. “The American people should be pleased that TARP funds are being put to use to help homeowners, not just to bail out Wall Street.”

Washington, DC – Yesterday, President Obama announced a tougher stance on financial reform. John Taylor, President & CEO of the National Community Reinvestment Coalition, made this statement:

“President Obama is to be commended for taking a tough stand with the financial industry. This is change the American people can get behind. The President has poked a hole in the bubble of denial that seems to be enveloping Washington; we need stronger financial reform measures. A banking lobbyist expressed concern today with the President’s ‘turn in tone’ but Americans are concerned with Washington’s ‘bankers know best’ mentality. It’s time for Congress to follow the President’s lead and stand up for working people, instead of taking their cues from the banks’ highly-paid lobbyists. It won’t be easy. The financial services lobby will expand its efforts to kill legislation and regulatory changes favorable to consumers. Consumer and community advocates must redouble their efforts to win meaningful financial reform.”

NCRC Once Again Calls For Mandate on Bank Loan Modifications

Efforts to keep Americans in their homes sink, as industry lobbyists work to kill efforts to remedy the damage caused by financial crisis

Washington, DC – As Wall Street bonus season begins, the foreclosure crisis continues into its fourth year largely unabated; last year saw ten straight months of over 300,000 foreclosure filings, and a cumulative 2.8 million homes that went into foreclosure last year, according to Realty Trac. Today’s news that only 66,000 borrowers have received permanent loan modifications under the federal Home Affordable Modification Program (HAMP) confirm that the existing responses to the foreclosure crisis can not keep pace with the number of Americans losing their homes. Meanwhile, financial lobbyists continue to fight against strong measures to provide effective oversight of the financial system and mitigate the damage caused by reckless and irresponsible lending and securitization practices, even as their CEOs told the Financial Crisis Inquiry Commission on Wednesday that they support financial regulation.

Coalition of community organizations says HAMP must be revamped; renews call for more aggressive foreclosure prevention efforts

December 8, 2009 

Washington, DC – The National Community Reinvestment Coalition (NCRC) today said that the government-sponsored Home Affordable Modification Program (HAMP) is not working, and more aggressive loan modification efforts are necessary to stem the foreclosure crisis. The number of loan modifications made permanent under the program is believed to be in the tens of thousands, compared to the 300,000+ loans that are entering foreclosure each month. As the Obama Administration continues their push to create jobs and further stimulate the economy, the ongoing foreclosure crisis threatens to impede economic growth for years to come, as pay-option adjustable rate mortgages (ARMs), Home Equity Lines of Credit and commercial loans add to the already massive foreclosure numbers.

November 10, 2009  

Washington, DC – Senator Dodd, Chairman of the Senate Banking Committee, today introduced a financial reform bill that would establish a robust Consumer Financial Protection Agency (CFPA), empowered to enforce the Community Reinvestment Act. Creating an agency whose sole mission is to protect consumers within the financial markets is critical in light of the impact of the financial crisis: More than 300,000 homes are going into foreclosure each month, small businesses cannot get the credit they need, and unemployment has risen above 10%. The Senate now has the opportunity to pass robust legislation that is in line with the President’s proposal. The House Financial Services Committee bowed to pressure from the financial services industry and passed a weak bill.

Washington, DC – The financial reform legislation that would establish a Consumer Financial Protection Agency has been severely weakened by Congress, which has bowed to the financial industry’s multi-million dollar lobbying campaign. The bill contains loopholes, exemptions and other weaknesses that undermine its ability to protect consumers or prevent another meltdown of the financial system. The failure of the legislation to ensure strong consumer protections is especially troublesome considering the impact the financial crisis has had: more than 300,000 homes going into foreclosure each month, unemployment approaching 10%, and more than 2.5 million people falling into poverty last year. H.R. 3126 is expected to be voted on by the House Financial Services Committee tomorrow.

Washington, DC – The National Community Reinvestment Coalition said the following on the President’s speech today on financial regulatory reform:

“We applaud the President’s necessary leadership on financial reform. Clearly, the President felt it necessary today to speak out against the weakening of the bill. Unfortunately, the damage from corporate lobbying in Congress may have already been done,” said John Taylor, president and CEO of NCRC.  “We thought Senator Durbin made an apt and figurative statement when he said that the banks owned Congress, but perhaps his comment was meant to be literal. Today’s speech should embolden members of Congress seeking to make the Consumer Financial Protection Agency (CFPA) strong. Unfortunately, the ability of the proposed CFPA to protect the most financially vulnerable individuals and communities has already been undermined by substantial changes to the bill.”