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 web-based housing counselor tool in order to streamline submission of completed loan modification applications for homeowners. On November 6, 2010, NCRC's Housing Counseling Network used the portal to provide mortgage assistance to 150 distressed households in a faith-based community in Prince Georges County, MD. The event was held in partnership with the National Black Church Initiative and Citi Mortgage.

NCRC provides a wide range of counseling services to homeowners nationwide, including default resolution counseling, loss mitigation and document file review, and will now be adding HOPE LoanPort™ to its arsenal of homeowner assistance options. Several NCRC members, including Detroit Non-Profit Housing, Home Repair Resource Center, Community Justice and Advocacy, Wayne County Foreclosure Prevention Program, United South Broadway Corporation and Operation Hope, are already using HOPE LoanPort™ to assist struggling homeowners.

HOPE LoanPort™ currently has thirteen (13) major mortgage servicers actively using its web portal, including American Home Mortgage Servicing, Inc., Bank of America, Bayview Loan Servicing, Chase, Citi, GMAC, MetLife®, Ocwen Loan Servicing, OneWest Bank, PNC Mortgage, Saxon Mortgage Services, SunTrust Mortgage, Inc. and Wells Fargo.

HOPE LoanPort™ also has commitments from more than 1,700 housing counselors from 360 organizations in 47 states, the District of Columbia and Puerto Rico.

The web portal is endorsed by the Department of Housing and Urban Development (HUD) and Maryland Congressman Steny Hoyer. The portal is also supported by state housing finance agencies in Arizona, Maryland, Nevada, North Carolina and Ohio.

President and CEO of NCRC, John Taylor, said, "NCRC is impressed with HOPE LoanPort™'s versatility, ease of use and ability to simplify the loan modification process for homeowners. We believe the portal gives our network of counselors a boost in dealing with the high volume of loan modification applications. It allows counselors to more easily send completed applications to the servicers with the assurance those applications will be reviewed on a timely basis. Because the servicers using the portal have agreed to provide regular status updates on the application, homeowners will also be able to more easily follow the progress of their applications."

Larry Gilmore, CEO of HOPE LoanPort™, added, "We are pleased that NCRC is partnering with us to assist homeowners. Together the NCRC and HOPE LoanPort™ will provide greater access to the portal to homeowners across the country."

HOPE LoanPort™, powered by RxOffice® and developed by the HOPE NOW Alliance, is a new web-based tool that streamlines loan modification applications on behalf of borrowers at-risk of foreclosure, allowing housing counselors to efficiently transmit completed applications to mortgage servicers. HOPE LoanPort™ is designed to improve the quality of both the application itself and the ability of servicers to make decisions on that application. For more information, please visit www.hopeloanportal.org.

About the National Community Reinvestment Coalition (NCRC):

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Washington, DC – Today, in reaction to the Consumer Financial Protection Bureau’s (CFPB) release of new appraisal rules, NCRC President and CEO John Taylor made the following statement:

“The CFPB’s new appraisal rules promote transparency and fairness for consumers. In a step that NCRC has long called for, all consumers will now receive copies of appraisals and automated valuation model (AVM) reports and will be able to check them for errors. Further, consumers and industry alike will benefit from the use of responsible valuation professionals in high cost loan origination. We are very pleased that the CFPB has taken our recommendations in this area.”

“One of the most overlooked elements of the housing and economic crisis is the role that inflated appraisals played. Research shows that 90% of appraisals during the height of the period of irresponsible, toxic lending were improperly and illegally influenced by lenders. Conversely, since the onset of the crisis home values have been overly deflated. The new disclosure requirements help immensely with both of these problems.”

“In addition to the steps they have taken thus far, the CFPB and the other regulators should undertake additional rulemaking to better regulate the activities of Appraisal Management Companies (AMCs), and to create a true arms length between originators and appraisers, which is already required by law but largely ignored.”

In June of 2012, NCRC Chief Program Officer David Berenbaum testified on appraisal oversight before the United States House of Representatives Committee on Financial Services.

About NCRC

The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development and vibrant communities for America's working families. To find out more, visit http://www.ncrc.org

Washington, DC– Today, in reaction to this morning’s House Financial Services Committee hearing, “Examining the Proper Role of the Federal Housing Administration in our Mortgage Insurance Market”, NCRC President and CEO John Taylor made the following statement:

“FHA plays a critical role in the housing market, which it has served very well for many years. The fact is, FHA and Ginnie Mae weathered the worst of the housing crisis, and are still standing. It is unreasonable to expect that they would emerge totally unscathed given the enormity of the crisis, which brought down some of the largest financial institutions in the country. FHA doesn’t guarantee bad product; the product they guaranteed suffered when toxic, subprime and predatory loans brought down the whole housing market and left millions underwater.”

“FHA has already taken several steps to recapitalize its single-family insurance fund, which should put it well on the way to full financial health. The agency has excellent leadership and a prudent manager in FHA Commissioner and Assistant Secretary for Housing Carol Galante.”

“Throughout its history, FHA has been able to help those toward the bottom of the economic ladder to access homeownership and build wealth through equity. If Congressman Hensarling had his way, Congress would cut off the rungs on that ladder that have allowed so many American families to move into the middle class.”

“FHA’s immediate financial future is of course linked to the health of the housing market and the economy as a whole. The focus for Congress should be measures to boost our economy and help families facing foreclosure.”

About the National Community Reinvestment Coalition (NCRC): The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development, and vibrant communities for America's working families.

Washington, DC – Today, in reaction to the National Mortgage Settlement Monitor’s latest quarterly update, NCRC President and CEO John Taylor made the following statement:

“The latest Settlement Monitor’s update shows that many homeowners are receiving relief in the form of principal reduction, which is a very positive thing. It is good to see that the banks are stepping up in their adherence to their obligations under the settlement. At the same time, while substantial progress has been made, it’s clear that more needs to be done. More borrower relief is essential to prevent foreclosures and to help stabilize the housing market. We look forward to more principal reductions and other meaningful relief for consumers.”

“Since the evidence is conclusive that communities of color were disproportionately targeted with subprime and high cost loans, it is necessary to ensure that borrower relief under the National Mortgage Settlement is focused in the areas that were hardest hit by nefarious industry lending and servicing practices. The Independent Settlement Monitor’s office will need to release additional data that makes it clear if communities of color are in fact being served by this settlement.”

“In addition, it is past due time for the Federal Housing Finance Agency (FHFA) to allow principal reductions at the Government Sponsored Enterprises (GSEs). For this to happen, the Senate must cease its blockage of President Obama's nominees to FHFA and confirm Mel Watt as FHFA Director. The Senate must also confirm Richard Cordray so that he can continue the excellent work he has done leading the Consumer Financial Protection Bureau (CFPB). These two confirmations would accelerate the housing recovery by reducing foreclosures, and ensure a safer marketplace for consumers."

About the National Community Reinvestment Coalition (NCRC): The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development, and vibrant communities for America's working families.

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 unfortunate that the OCC has abandoned the Independent Foreclosure Review process for these banks. Although the Independent Foreclosure Review process has been deeply problematic, fixing it would have been a preferable strategy to ensure that banks are held accountable for each of their misdeeds. Regulators could have opted to improve the Independent Foreclosure Review process by enhancing outreach, enforcement and accountability mechanisms, and taking other steps to ensure that homeowners who have been harmed receive a fair review and fair payment for any financial harm as a result of bank abuses.”

“In terms of the actual monetary compensation involved, this settlement will not settle the score. In fact, it is likely that we will now never fully know the extent of the damage wrought on American homeowners without a case-by-case review. This settlement unfortunately allows these banks and the government to wash their hands of that responsibility. As much as everyone wants to turn the corner and put this period in American finance behind us, the truth is there are real people facing real problems who are being left behind."

About NCRC

The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development and vibrant communities for America's working families. To find out more, visit http://www.ncrc.org

Washington, DC – Today, in reaction to the Consumer Financial Protection Bureau’s (CFPB) release of the Qualified Mortgage (QM) rule and the inclusion of a legal “safe harbor” for certain qualified mortgages, NCRC President and CEO John Taylor made the following statement:

“The Consumer Financial Protection Bureau, in creating a legal safe harbor for certain qualified mortgages, has given the industry a protection that does nothing to help consumers. It is an unneeded and undeserved privilege for the lending industry, which caused grave financial harm to millions of Americans during the financial crisis.”

“What the safe harbor does is abridge consumers’ legal rights in favor of lenders' interests. No matter how well crafted, QM cannot be foolproof in that it cannot anticipate the future. New products can emerge, and new industry strategies can take hold. Therefore, consumers should have full legal recourse when they are abused in ways that the QM rule does not anticipate.”

“Regardless, this rule removes the excuse lenders throughout the country have used as to why they have been constricting access to mortgage credit. With the rule in place, we look forward to the issuance of a lot more mortgage products to creditworthy borrowers, which will help stimulate the housing market and economic recovery.”

NCRC has previously called for a rebuttable presumption for qualified mortgages.

About NCRC

The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development and vibrant communities for America's working families. To find out more, visit http://www.ncrc.org

Washington, DC - Today, in reaction to the news that President Obama has renominated Richard Cordray to lead to the Consumer Financial Protection Bureau (CFPB), NCRC President and CEO John Taylor made the following statement:

“Richard Cordray has done an outstanding job as CFPB Director, and we urge the Senate to confirm his nomination. Under his excellent leadership, the agency has established itself as a strong and effective regulator that looks out for the interests of consumers. From the CFPB’s enforcement action against Capital One for deceptive and abusive credit card practices, to the many new protections and accountability mechanisms the agency has implemented, they have accomplished a lot over the last year. The Senate should confirm his nomination promptly so that he can continue that work.”

NCRC previously applauded President Obama’s 2012 recess appointment of Richard Cordray to lead the CFPB.

About the National Community Reinvestment Coalition (NCRC):
The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development, and vibrant communities for America's working families.

Rubber stamp foreclosures continue pattern of disrespect for consumers’ rights and legal process, creating moral hazard for financial services industry

Washington, DC – In a letter to President Obama on Friday, the National Community Reinvestment Coalition joined dozens of other consumer and civil rights groups in a call for a temporary national moratorium on foreclosures, until an investigation can be completed to determine the extent to which consumers’ rights have been violated by servicers and lenders. NCRC also called on Congress and the Administration to pursue non-voluntary measures to resolve the foreclosure crisis.

“The rights of consumers have been treated as an afterthought by the financial industry,” said John Taylor, president & CEO of the National Community Reinvestment Coalition. “Allowing the industry to rubber stamp foreclosures, and continue with sloppy, extralegal practices promotes a ‘moral hazard’ that encourages abusive behavior. Not intervening to investigate and ensure that consumers are adequately protected in the foreclosure process sends a message that mortgage lending and servicing continues to be the Wild West, wherein the industry is free to do what they want, without consideration for the borrower.”

“We need to end the voluntary reliance on the industry to do the right thing with respect to homeowners. Three years of following this approach on the foreclosure crisis has largely failed. Congress and the Administration should take this opportunity to finally put in place something that puts an end to unnecessary foreclosures, rather than delaying them,” said Taylor.

September 20, 2011 -- NCRC President and CEO John Taylor testified today before the Federal Reserve on the Capital One acquisition of ING Direct USA, citing issues like systemic risk, public benefits, the future of community-based banking, and the effectiveness of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Download the Testimony

March 29, 2012 -- NCRC President and CEO John Taylor and National Neighbors Silver Ambassador, Annette Smith, testified today before the House Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies, citing issues like economic security for older adults, foreclosure prevention, and the need to restore funding to vital programs affecting America's seniors.

Annette Smith, a representative of the California Coalition for Rural Housing, one of ten National Neighbors Silver partners involved in NCRC's newest initiative to build economic security for older adults, offered written testimony in support of full funding for the Older Americans Act to the House Appropriations Subcommittee. Ms. Smith spoke of her personal experience accessing critical services in the face of homelessness.

Download the Testimony of John Taylor