Center for Responsible Lending
 | A major contributor to this article appears to have a close connection with its subject. (October 2019) |
| Company type | 501(c)(3) |
|---|---|
| Founded | 2002 |
| Headquarters | Durham, North Carolina |
Key people | Michael Calhoun (president) Martin Eakes (CEO) |
| Products | Financial services Microfinance |
| Website | www |
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. CRL is affiliated with the Center for Community Self-Help.[1]
History
[edit]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. CRL has issued research reports, issue briefs, and policy statements on a range of topics. CRL has pushed 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 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, CEO of the Center for Responsible Lending and Self-Help, has stated that problems in the subprime lending market were driven by a focus on self-interest among financial actors. He advocates for a broader definition of success that includes benefits to families and communities through sustainable lending practices.[5]
In 2023, CRL supported South Carolina legislation (S.910) aimed at limiting access to small-dollar loans. The bill faced opposition from free-market advocacy groups, which argued that it unfairly exempted larger financial institutions, including credit unions such as Self-Help, while imposing restrictions on short-term lenders. CRL has also drawn attention for its funding sources, having received over $3 million from the Foundation to Promote Open Society between 2018 and 2022, according to IRS filings and foundation reports.[6]
Martin Eakes
[edit]Martin Eakes, founder of CRL, is associated with a network of nonprofit organizations that received over $500 million in federal funding through the U.S. Treasury’s Community Development Financial Institutions Fund (CDFI Fund). CRL has also received over $2 million in funding from philanthropist George Soros and more than $25 million from a foundation co-founded by a North Carolina couple identified by Time magazine as partly responsible for the 2008 financial crisis. Eakes is listed as the registered agent for at least 65 limited liability companies (LLCs) in North Carolina, many with similar names, such as Self-Help Investor III and Self-Help Investor IX, reflecting the organizational structure of the broader Self-Help network.[7]
Lobbying work
[edit]An investigation by Politico revealed CRL played a 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."[8]
CRL opposed the Mortgage Choice Act of 2013 (H.R. 3211; 113th Congress), which proposed changes to the Consumer Financial Protection Bureau’s regulations on qualified mortgages by introducing new exclusions.[9]
References
[edit]- ^ "CRL - Mission & History". Archived from the original on 2009-05-08. Retrieved 2010-04-26.
- ^ "Our Work". Archived from the original on 2010-04-12. Retrieved 2010-04-26.
- ^ "Consumer Financial Protection Agency (CFPA/CFPB)". Archived from the original on 2010-04-10. Retrieved 2010-04-26.
- ^ "World Of Trouble". Retrieved 2017-06-04.
- ^ "The 50 Most Powerful People in Real Estate 2010: Eric Stein - BusinessWeek". Archived from the original on 2010-04-28. Retrieved 2010-04-26.
- ^ "IRS Reports: Anti-SC small dollar loan group backed by more than $2 million from George Soros". Greenville Leader. 2024-02-06. Retrieved 2025-07-10.
- ^ "Non-profits owned by Durham credit union owner received more than $500 million in U.S. Treasury funding, federal records show". Durham Reporter. 2024-03-14. Retrieved 2025-07-09.
- ^ "Emails reveal consumer protection agency's cozy ties". POLITICO. Retrieved 2017-06-04.
- ^ "CBO - H.R. 3211". Congressional Budget Office. 5 June 2014. Retrieved 9 June 2014.
