| Center for Responsible Lending | |
| Type: | 501(c)(3) |
| Foundation: | 2002 |
| Location: | Durham, North Carolina |
| Key People: | Michael Calhoun (president) Martin Eakes (CEO) |
| Products: | Financial services Microfinance |
The Center for Responsible Lending (CRL) is a nonprofit organization research and policy group based in Durham, North Carolina, United States. Its stated purpose is to educate the public about financial products and to push for policies that curb predatory lending. On its website and elsewhere, CRL describes its mission as that of "protecting homeownership and family wealth by working to eliminate abusive financial practices." CRL is affiliated with the Center for Community Self-Help.[1]
Established in 2002 by Self-Help, CRL is a nonprofit, nonpartisan research and policy organization that focuses on financial products and services, including mortgages, credit cards, payday lending, and bank overdraft fees.[2] It is affiliated with the Self-Help Credit Union, also founded by Martin Eakes in Durham, North Carolina. It has issued research reports, issue briefs and policy statements on a range of topics. CRL has pushed hard for financial reform—including the creation of the Consumer Financial Protection Agency—in the wake of the mortgage meltdown[3]
The founders of CRL are Herbert Sandler and his wife Marion Sandler, founders of the Sandler Foundation. The Sandlers have been heavily criticized for their role in the 2008 financial crisis. Their financial company, Golden West, was one of the many banks to offer the adjustable rate mortgages that were blamed for the subprime mortgage crisis. The Sandlers' ties to the financial crisis were detailed by CBS's 60 Minutes.[4]
Martin Eakes, the current CEO of CRL and Self-Help, describes the mission of the organization as follows: "The economic problems we've seen in subprime lending came about through a narrow focus on self-enrichment among brokers, lenders and investors on Wall Street. We must redefine success to include the common good, and recognize that we are all enriched through sustainable lending that strengthens families and communities."[5]
An investigation by Politico revealed CRL had a heavy role in helping the Consumer Financial Protection Bureau (CFPB) draft new regulations on payday loans. According to Politico, "The group regularly sent over policy papers, traded emails and met multiple times with top officials responsible for drafting the rule. At the same time, the group's financial services business, Self Help Credit Union, was pushing CFPB to support its own small-dollar loan product with a much lower interest rate as an alternative to payday loans."[6]
CRL opposed the Mortgage Choice Act of 2013 (H.R. 3211; 113 Congress), a bill that would direct the CFPB to amend its regulations related to qualified mortgages to reflect new exclusions made by this bill.[7]