The National Association of Independent Housing Professionals (NAIHP) has announced via their website that today they will be officially filing suit in U.S. District Court challenging the Loan Originator Compensation Rule due to take affect on April 1, 2011.
Although details of the suit have not yet been released, the NAIHP has previously announced their intention to challenge this rule by any means available. In a message to all mortgage brokers, originators and the National Association of Mortgage Brokers (NAMB), NAIHP President Marc Savitt called upon NAMB to join forces with NAIHP in a combined effort to challenge the new rule. However, Savitt said that NAIHP was fully prepared to proceed with their own legal action should NAMB be unable or unwilling to work with NAIHP on such an effort.
At this point, it does appear that both organizations intend to act independently and file separate actions to challenge this rule.
On March 1st, NAMB announced that they have engaged a law firm via retainer to begin structuring their own lawsuit to be filed in the coming days. NAMB announced their intentions via a video post that can be viewed below.
More details about the two competing lawsuits will be provided as they are released.