We need to update CRA to reflect the realities of the modern banking era. Instead of branch-based banking, many transactions take place online or through networks of brokers. CRA must be changed so that banks have community responsibilities wherever they do business, not just wherever they have branches. And we need stronger ways to hold banks accountable for providing important services--such as affordable checking accounts--to low-income communities.
The petitions were delivered as part of a national movement during which over 160,000 Americans signed a petition from Americans for Financial Reform asking members of Congress to confirm Cordray let the CFPB continue to do its job of protecting consumers.
A replacement for Ed DeMarco, the current acting director of the FHFA, is long overdue. DeMarco has obstructed necessary policy changes that would have lessened the negative impact of the foreclosure crisis on families and communities alike. Specifically, he has barred Fannie Mae and Freddie Mac from allowing lenders to reduce principal on underwater loans, even in situations where it would prevent foreclosure.
The CFPB’s database is the largest public database of federal consumer financial complaints, providing information on over 90,000 complaints regarding particular financial institutions or financial products. The database enables the public to see what types of products consumer complained about and how particular financial institutions responded. Products about which CFPB is currently collecting data include mortgages, student loans, credit cards, and other consumer loans.
The proposed standards require an assessment of the borrower’s eligibility for the product and financial capacity to repay the loan and meet other financial obligations, limit the number of such loans borrowers can receive in one year, and mandate adequate management and monitoring of the significant safety and soundness risks posed by offering these high-cost, short-term loans. The public has an opportunity to comment on the proposed guidance.
Last month, Woodstock joined more than 250 organizations in sending a letter to leaders of the Office of the Comptroller of the Currency, Consumer Financial Protection Bureau, Federal Reserve Board, and Federal Deposit Insurance Corporation to end the practice of payday lending by banks.
The Protecting Consumers from Unreasonable Credit Rates Act would limit abusive lending practices and create a fairer playing field for all consumers.
The Consumer Financial Protection Bureau (CFPB) recently asked the public for ideas on how to promote loan affordability for private student loan borrowers, especially in periods of hardship.