By: Lori Ann LaRocco CNBC Sr. Talent Producer Published: Monday, 29 Nov 2010 | 10:17 AM ET The foreclosure crisis still divides us into two camps. There are those who believe that foreclosing rapidly on homes subject to defaulted mortgages is vital to clearing the market. Others believe we should do everything we can […]
NCRC’s Housing Counseling Network Offers Loan Modification and Financial Assistance to Homeowners Are you struggling to make your mortgage payments? Are you unable to refinance? Are you upside on your mortgage? Are you late paying your mortgage? If you answer “YES” to any of the following above, you may be in danger of facing […]
Washington, DC – A new report from the Congressional Oversight Panel shows that the Administration’s leading foreclosure prevention program, the Home Affordable Modification Program (HAMP), will modify less than 5% of the loans that will go into foreclosure by program end. An estimated 8 to 13 million foreclosures will take place by 2012. The report […]
NCRC Calls For Federal Investigation Into Lenders’ Refusal to Make Loans to Working Class Families
Files 22 Complaints With HUD Over Lenders’ Unfair & Discriminatory Policies
WASHINGTON, DC — The National Community Reinvestment Coalition (NCRC) today called on federal agencies and banking regulators to investigate the nation’s largest Federal Housing Administration (FHA) approved lenders for possible violations of federal housing rules by refusing to offer loans to qualified Americans to the FHA policy of a minimum credit score of 580 and above with a 3.5% downpayment.
A recent NCRC investigation found that the majority of top FHA lenders failed to offer applications for federal-guaranteed loans to potentially qualified borrowers with credit scores below 620 or 640, even though FHA guarantees loans with credit scores to 580. These lenders have policies that establish “credit overlays” above the FHA policy, with minimum credit score requirements as high as 640. One-third of all Americans have credit scores under 620.
“Critical to our nation’s economic progress is the ability of homeowners to get quality refinancing, and for homebuyers to reclaim vacant houses by accessing quality mortgage credit, ” said John Taylor, president & CEO of the National Community Reinvestment Coalition.
“The decision by some banks to not follow the FHA’s policy is cutting qualified borrowers off from accessing credit, and in doing so, causing harm to their ability to prosper, build wealth and for our economy to grow. And this decision is arbitrary, because the loans are 100% guaranteed, whether the borrower’s credit score is 580 or 780. That means the loans with lower credit scores don’t pose additional risk to the company, so there’s no legitimate business defense for this across-the-board practice. A lender is only at risk if they fraudulently or improperly originated the loan, against FHA’s underwriting criteria. As is the case across the secondary market, in that situation, the lender can be forced to buy back the bad loan,” said Taylor.
An investigation by the National Community Reinvestment Coalition (NCRC) discovered that a majority of the top 50 FHA lenders have instituted policies that limit access to credit to working families in low- and moderate-income communities, and in communities of color, the very same communities that have been most harmed by the greed and malfeasance of […]
Impact from Foreclosure Crisis Expanding, Churches Feeling the Pain As Thanksgiving Comes Washington, DC – Dozens of faith leaders today joined Rev. Jesse Jackson, Sr., in calling for congressional action to address the foreclosure crisis and to strengthen and enforce the Community Reinvestment Act (CRA), in order to stabilize communities nationwide that have been […]
Organization Praises Web Portal as Complete Solution for Submitting Loan Modification Applications (WASHINGTON, DC) – HOPE LoanPort™ announced today that the National Community Reinvestment Coalition (NCRC), an association of more than 600 community-based organizations, is endorsing its web-based loan modification portal. Both the NCRC and many of its members are already using the groundbreaking new […]
NCRC Urges Fed To Stimulate Economy By Demanding Principal Reductions On Its Loans Worth $1.1 Trillion Taylor Says Federal Government Has Power, Authority to Obtain Reductions on Majority of Mortgage Market Washington, DC – In its efforts to stimulate the economy, the Federal Reserve should demand that banks reduce the principal balances on $1.1 trillion […]