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WIZ18
Flash in the pan


Joined: 17 Feb 2011
Posts: 33

Stay
PostPosted: Fri Apr 01, 2011 1:18 pm Reply with quoteBack to top

Mortgage Brokers Win Bid to Block Federal Reserve Loan Commissions Rule

By Tom Schoenberg - Apr 1, 2011 12:08 AM ET

Two trade groups representing mortgage brokers won an appeals court ruling temporarily blocking a Federal Reserve rule that limits commissions for loan officers in mortgage transactions from taking effect today.

The U.S. Court of Appeals in Washington granted emergency motions from the National Association of Mortgage Brokers and the National Association of Independent Housing Professionals which argue the rule unfairly penalize brokers, who won’t be able to pay loan officers from consumer-paid fees.

“The purpose of this administrative stay is to give the court sufficient opportunity to consider the merits of the motions for emergency relief and should not be construed in any as a ruling on the merits of those motions,” the court said in its order yesterday.

U.S. District Judge Beryl Howell on March 30 rejected the groups’ request to stop the provision from taking effect, finding that public policy interests outweighed harm to the mortgage-broker industry.

“The board has reasonably concluded that the rule will further public policy interests, a position that is further supported by the Dodd-Frank Act, which also includes provisions restricting certain loan-compensation practices,” Howell said in a 46-page opinion, referring to the law that overhauled the financial industry last year.

The trade groups filed separate lawsuits and appeals challenging the regulation.

Mortgage Finance Weaknesses

The Fed rule, part of the central bank’s effort to fix weaknesses in mortgage finance, is aimed at preventing mortgage originators from receiving more compensation for selling home loans with higher interest rates.

Susan Stawick, a spokeswoman for the Federal Reserve, didn’t immediately respond to an e-mail message seeking comment after regular business hours yesterday.

Marc Savitt, president of the National Association of Independent Housing Professionals, said “We’re glad the judges issued the stay.”

“Once they have the opportunity to review the entire case, we think they’ll agree with us that the Fed did not have the authority” to issue the rule,” Savitt said.

Mike Anderson, government affairs chairman of the National Association of Mortgage Brokers, also welcomed the decision.

“If we win this it will be a victory for consumers,” Anderson said.

The Dodd-Frank law, the most sweeping overhaul of financial regulation since the 1930s, created a new Consumer Financial Protection Bureau that must also write regulations to prevent loan officers from steering customers into costly loans.

The cases are National Association of Mortgage Brokers v. Board of Governors of the Federal Reserve System, 11-5078 and National Association of Independent Housing Professionals Inc. v. Board of Governors of the Federal Reserve System, 11-5079, U.S. Court of Appeals for the District of Columbia (Washington).

To contact the reporter on this story: Tom Schoenberg in Washington at tschoenberg@bloomberg.net

To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net.
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WIZ18
Flash in the pan


Joined: 17 Feb 2011
Posts: 33

Re: Stay
PostPosted: Fri Apr 01, 2011 1:20 pm Reply with quoteBack to top

Also to note, received emails already from some lenders stating business as usual until further notice.
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cooper
Dyn-o-mite!


Joined: 11 Mar 2007
Posts: 491
Location: River City

Re: Stay
PostPosted: Fri Apr 01, 2011 1:23 pm Reply with quoteBack to top

link to court order. .
http://www.namb.org/images/stay-of-rule.pdf

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Credit Unon Guy
Nitroglycerin


Joined: 03 Apr 2008
Posts: 832
Location: Camden, SC

Re: Stay
PostPosted: Fri Apr 01, 2011 8:21 pm Reply with quoteBack to top

Phh is still going ahead with then new comp rules......

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Sachcan9
Cherry Bomb


Joined: 02 Nov 2007
Posts: 161
Location: woodland hills

Re: Stay
PostPosted: Fri Apr 01, 2011 9:48 pm Reply with quoteBack to top

Credit Unon Guy wrote:
Phh is still going ahead with then new comp rules......


so is wells
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klifffy
Cherry Bomb


Joined: 03 Aug 2007
Posts: 185

Re: Stay
PostPosted: Fri Apr 01, 2011 10:05 pm Reply with quoteBack to top

I'm guessing they will get lots of new submissions......
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Pirimar
Dud?


Joined: 25 Sep 2009
Posts: 24
Location: Indiana

Re: Stay
PostPosted: Fri Apr 01, 2011 11:30 pm Reply with quoteBack to top

klifffy wrote:
I'm guessing they will get lots of new submissions......



So is Citi... <snicker>

Seems like these bankers are an optimistic bunch aren't they?
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MakingIt
Nitroglycerin


Joined: 04 Dec 2007
Posts: 629

Re: Stay
PostPosted: Sun Apr 03, 2011 3:20 pm Reply with quoteBack to top

Maybe there are others like me, maybe not.

I was hoping it would go through and lets get on with it. I would be making more with same units and even get more units. I have heard many people quitting the business last week which only means more business for those who stay.
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BIGTXLENDER
Dyn-o-mite!


Joined: 22 Nov 2008
Posts: 217
Location: TEXAS

Re: Stay
PostPosted: Sun Apr 03, 2011 5:35 pm Reply with quoteBack to top

once again all this is doing is hurting the lower loan amounts. I know I am not going to work a $100k hard a$$ FHA loan only to make 1 point.......

they can go to the Bank LO to get their time wasted or get dragged thru the mud before closing.

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MakingIt
Nitroglycerin


Joined: 04 Dec 2007
Posts: 629

Re: Stay
PostPosted: Sun Apr 03, 2011 8:34 pm Reply with quoteBack to top

BIGTXLENDER wrote:
once again all this is doing is hurting the lower loan amounts. I know I am not going to work a $100k hard a$$ FHA loan only to make 1 point.......

they can go to the Bank LO to get their time wasted or get dragged thru the mud before closing.


I'll take them. My lenders have set minimums and maximums. All my minimums are $ 2,000.
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