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Since 2002, this organization has been a consumer
advocate concerning various types of lending.
"The new rules have been written to directly
address some of the causes of the foreclosure
crisis and will prevent future abusive practices
from happening," she said. "They will help people
understand what they are buying and will prevent
abuses such as payment shock when interest rates
go up on ARMs [adjustable rate mortgages]."
She explains that because of the aggressive
marketing of reckless loans, too many
mortgages became destructive for homeowners
and communities. In response, CRL conducted
mortgage research and monitored foreclosure
trends, using this information to advocate with
national leaders for stronger policies to help
prevent future injustices in lending.
Overall, Johnson sees these new regulations
as a welcome relief to remedy questionable
lending practices of the past. She feels they will
put in place a standard that balances consumer
protections with broad access to credit.
"Having commonsense rules is going to be a
benefit for all borrowers," she added.
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