Fighting predatory lending | News Feature | Indy Week
Pin It

Fighting predatory lending 

CRL has roots in Self Help

Martin Eakes and his wife, Bonnie Wright, started Self-Help in Durham 25 years ago as a way to help low-income folks build wealth. The heart of the nonprofit enterprise: making mortgages, and later small-business loans, available to people with steady jobs and rental-payment histories but who, nonetheless, weren't considered "good risks" by traditional bankers. Starting virtually from scratch (a bake sale raised the first $77), Self-Help has grown to be one of the nation's leading community banks, with total financings of almost $4 billion to some 40,000 formerly underserved families and businesses.

In 1998, however, Self-Help's leaders realized their good work was being undercut by predatory mortgage lending practices that were "stripping" the equity out of borrowers' homes. Thus was born the Coalition for Responsible Lending, which fought for and won the nation's first anti-predatory lending bill in North Carolina. Soon, as other states asked how they did that, the coalition became the Center for Responsible Lending, now an organization with 45 employees offices in Washington, D.C., as well as in Durham, and funding from major sources like the Ford Foundation, the Annie B. Casey Foundation and the Z. Smith Reynolds Foundation.

CRL President Mark Pearce estimates that predatory mortgage lending practices cost homeowners some $9 billion a year. But predatory payday lending is right behind, he says, extracting an estimated $5-6 billion a year from unwary borrowers. "With minority and low-wealth families losing $16 billion of wealth each year, predatory financial practices have become the single-most imminent threat to minority wealth in America. We must act quickly or we will lose the last 25 years of economic advancement by these families," CRL says.

Comments

Subscribe to this thread:

Add a comment

INDY Week publishes all kinds of comments, but we don't publish everything.

  • Comments that are not contributing to the conversation will be removed.
  • Comments that include ad hominem attacks will also be removed.
  • Please do not copy and paste the full text of a press release.

Permitted HTML:
  • To create paragraphs in your comment, type <p> at the start of a paragraph and </p> at the end of each paragraph.
  • To create bold text, type <b>bolded text</b> (please note the closing tag, </b>).
  • To create italicized text, type <i>italicized text</i> (please note the closing tag, </i>).
  • Proper web addresses will automatically become links.

Latest in News Feature



Twitter Activity

Comments

The piece never indicated that Mr. Little evicted anyone. His informed analysis and that of other knowledgeable folks quoted in …

by chuckde424 on John Little and Other Developers Are Gentrifying Durham’s East End. They’re Not About to Apologize. (News Feature)

This is why we had to move. (Note- we are a Caucasian household, middle class) Housing is getting to be …

by maeveduir on John Little and Other Developers Are Gentrifying Durham’s East End. They’re Not About to Apologize. (News Feature)

Most Recent Comments

The piece never indicated that Mr. Little evicted anyone. His informed analysis and that of other knowledgeable folks quoted in …

by chuckde424 on John Little and Other Developers Are Gentrifying Durham’s East End. They’re Not About to Apologize. (News Feature)

This is why we had to move. (Note- we are a Caucasian household, middle class) Housing is getting to be …

by maeveduir on John Little and Other Developers Are Gentrifying Durham’s East End. They’re Not About to Apologize. (News Feature)

Disgusting. Not a word about the social, political, or economic forces that ALLOWED the neighborhoods to get so bad in …

by Peter Bonzani on John Little and Other Developers Are Gentrifying Durham’s East End. They’re Not About to Apologize. (News Feature)

I can't see how this is bad for Durham. Too many slumlords have allowed their properties to rot, leaving people …

by Durham451 on John Little and Other Developers Are Gentrifying Durham’s East End. They’re Not About to Apologize. (News Feature)

I've lived in Durham for over 12 yrs now and have seen and experienced it's good and bad. I have …

by Ron Corey on John Little and Other Developers Are Gentrifying Durham’s East End. They’re Not About to Apologize. (News Feature)

© 2018 Indy Week • 320 E. Chapel Hill St., Suite 200, Durham, NC 27701 • phone 919-286-1972 • fax 919-286-4274
RSS Feeds | Powered by Foundation