The U.S. Court of Appeals today dissolved the stay that had been granted on a delay in the implementation of the Federal Reserve Board’s loan officer compensation rule, putting the rule into effect.
“Clients should be prepared to implement their plans for all loans on which an application is received on or after April 6, 2011,” said a statement from Weiner Brodsky Sidman Kider PC. “While the case may proceed on the merits, if the plaintiffs chose to do so, the Rule is effective immediately and clients should not delay.”
The National Association of Mortgage Brokers (NAMB) and the National Association of Independent Housing Professionals (NAIHP) earlier today filed a joint reply brief in the U.S. Court of Appeals in response to a court-granted stay on implementation of the Federal Reserve Board’s loan officer compensation rule, originally scheduled to take effect on April 1. The response followed an opposition statement from the Fed, which was filed yesterday.
NAIHP President Marc Savitt told RMD prior to the announcement that a lifted stay would not prevent further litigation, but it would likely mean the rule would go into effect pending further action.
View the court decision.
Written by Elizabeth Ecker
