The National Association of Independent Housing Professionals (NAIHP) has announced their decision to withdraw from the Loan Originator Compensation lawsuit and focus on other efforts to revoke or change the rule. The other party to the suit, the National Association of Mortgage Brokers (NAMB) has stated they plan to continue the appeals process while also pursuing additional options.
NAIHP announced their decision after the U.S. Court of Appeals for the District of Columbia lifted a temporary stay and Rule went into effect on April 6, 2011. Believing that their efforts are better placed in other avenues, NAIHP President Marc Savitt said, "In our opinion, continuing with the appeal would be unwise; as it is unlikely a third ruling by the court would be different from the first two. Any further appeal would be heard by the same three judges who recently lifted the 'stay,'"
In addition to the stay being lifted in the appeal, Savitt pointed out that the Circuit Court had reviewed the entire record prior to denying further injunction. NAIHP determined that these results were a "clear signal" from the court that they were unlikely to prevail at trial.
Although they did not provide details on their plans, NAIHP said they have already moved forward into alternative options for fighting this rule.
NAMB has stated that they are currently working with attorneys to plan their appeal strategy while also working on legislative efforts. They expect the next step of the legal process to occur in the next 30-45 days. Mike Anderson, Government Affairs Chairman said that the group is also seeking on ways to support legislation to amend the rule.