The Center for Responsible Lending (CRL) said it will continue to support legislation that recognizes subprime loans as a threat to American homeownership, rather than a means for borrowers to gain entry into the real estate market. That’s the message CRL will bring to lawmakers when they testify in front of the U.S House Committee on Financial Services today.

In a press release, CRL said it updated its research from Dec. 2006 and concluded that 2.4 million subprime loans will be facing foreclosure – a much greater figure than the 2.2 million the agency projected in December. CRL said it “finds many more families – almost one million – will lose their homes than will become new homeowners.”
“Homeownership has been thwarted rather than supported,” said Mike Calhoun, CRL president. “There’s a difference between increasing access to home loans and expanding homeownership.”
Calhoun, who will present to lawmakers during the hearing, said he will commend federal regulators for their recent decision to propose tighter lending requirements.
Some of CRL’s recommended strategies include standards that ensure a borrower has the “ability to pay,” a requirement that the Federal Reserve Board use its authority to strengthen protections or address abuses, and efforts to upgrade bankruptcy laws to help those already struggling with subprime loans.
While CRL continues to push for the regulation of subprime loans, organizations like the Mortgage Bankers Association have asked lawmakers to avoid regulations that excessively restrict a borrower’s  ability to gain entrance into the real estate market.