Washington, DC – Today, 90 community, consumer, and civil rights groups sent a letter led by the National Community Reinvestment Coalition (NCRC) to the Office of the Comptroller of the Currency (OCC) outlining the preferred path for regulation of financial technology companies (fintechs), such as online marketplace lenders, if they are granted charters by the regulator. The groups propose […]
Letter to OCC Regarding Fintechs (Download PDF)
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Washington, DC – Today, in response to the Office of the Comptroller of the Currency’s (OCC) conditional approval of the merger between OneWest Bank and CIT Bank, the National Community Reinvestment Coalition’s (NCRC) President and CEO John Taylor made the following statement: “It is a positive sign that the regulator held public hearings on this
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Washington, DC – Today, in reaction to the adoption of a final credit risk retention rule by federal regulators, NCRC President and CEO John Taylor made the following statement: “We are pleased that regulators have aligned the definition of a Qualified Residential Mortgage with the definition of a Qualified Mortgage, and that the final rule
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Washington, DC — Today, in reaction to the announcement of an $8.5 billion settlement between the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board and ten banks, NCRC President and CEO John Taylor made the following statement: “While compensation for homeowners who have been harmed is a good thing, it is
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Washington, DC — In the wake of a troubling new report from SNL Financial showing major banks pulling out from low-income areas, the National Community Reinvestment Coalition (NCRC) has called for banking regulators to investigate the trend and take action. The SNL Financial report, entitled “Banks follow the money and exit lower-income areas,” finds that
Obama Appoints Protector of the Taxpayer Interest Washington, DC — President Obama will today use his constitutional authority to recess appoint former Ohio Attorney General Richard Cordray to head the Consumer Financial Protection Bureau (CFPB). In 2010, the National Community Reinvestment Coalition (NCRC) gave Cordray its Henry B. Gonzalez Award for outstanding public service, noting that
NCRC Supports Appointment of Richard Cordray to Head the CFPB Read More »
Senate Blocks Qualified Nominee Washington, DC — The National Community Reinvestment Coalition (NCRC) today issued the following statement after the Senate failed to secure cloture on the nomination of Richard Cordray to head the Consumer Financial Protection Bureau. NCRC President & CEO John Taylor: “Shame on those Senators who have blocked Richard Cordray’s nomination. The
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Washington, DC — The National Community Reinvestment Coalition today urged the Senate to confirm former Ohio Attorney General Richard Cordray as Director of the Consumer Financial Protection Bureau (CFPB). In 2010, the National Community Reinvestment Coalition (NCRC) gave Cordray its prestigious Henry B. Gonzalez Award for outstanding public service, noting that he was a “shining
NCRC Calls on Senate to Confirm Richard Cordray to Head the CFPB Read More »
Over a dozen consumer and civil rights groups ask OCC for extension of comment period and public hearings Washington, DC — The National Community Reinvestment Coalition (NCRC) today announced its opposition to the Capital One acquisition of HSBC’s U.S. credit card business. Over a dozen national consumer and civil rights groups wrote to the Office
November 8, 2011 — During tumultuous times for the American housing market, Capital One continues practices that are degrading the chances of recovery and sustainability for low- to moderate-income communities. Their latest effort, an attempt to acquire HSBC, spurred a response from national consumer, community, housing, and civil rights organizations that requests an extension of
National Groups Request Hearings on Capital One-HSBC Acquisition Read More »
Background on Qualified Residential Mortgages The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”) promoted responsible lending by requiring financial firms to retain 5 percent of the credit risk when they sell loans to investors. Leading up to the crisis, mortgage firms did not carefully underwrite loans and then sold loans to
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Letter to Regulators Regarding Consent Orders
Regulators Servicing Consent Orders Read More »
Analysis of the Obama Administration’s Housing Finance Proposals (1.45mb)
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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.
NCRC Calls For Federal Investigation Into Lenders’ Read More »
