Items Tagged with 'loan originator compensation'

ARTICLES

  • Hundreds of mortgage execs ask CFPB to change LO pay rules

    MBA members push for loan officers compensation change
    Almost 250 senior executives at some of the nation’s largest mortgage companies want the government to make changes to the rules surrounding how they’re allowed to pay their loan originators. Last week, the group of mortgage execs (organized by the Mortgage Bankers Association) sent a letter to the CFPB, calling on the bureau to change its Loan Originator Compensation rule.
    Read More
  • Curious Speculation on Reverse Mortgage Exits

    Reporting in The Washington Post, contributor Tom Kelly suggests that recent exits from the reverse mortgage market by Financial Freedom, Bank of America and Seattle Mortgage are the result of the new compensation rules.  He states that it is "curious how companies promote the launch of a new product or program but do little to inform consumers when it is no longer available."   His comment is somewhat "curious" as it suggests a lack of understanding of business operations.  Companies generally do not initiate large scale public relations campaigns on reductions in their operations unless necessary to respond to
    Read More
  • Hearing Held on Temporary Halt of LO Comp Rule

    In a hearing in U.S. District Court on Tuesday, attorneys for the plaintiffs provided arguments supporting a temporary restraining order and preliminary injunction ceasing the implementation of the Loan Originator Compensation rule on Friday, April 1, 2011.  The National Association of Mortgage Brokers (NAMB) expressed confidence that the hearing provided them the opportunity to respond to questions posed by Judge Beryl Howell. “NAMB representatives were given the opportunity to present proof before Judge Howell and provide her with additional information to delay the FRB’s rule on LO compensation and grant an injunction,” said Mike Anderson, CRMS of Essential Mortgage,
    Read More
  • NAIHP Files Suit Over LO Compensation Rule

    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
    Read More
  • FRB: Mangles Affiliate Compensation

    FRB: Mangles Affiliate Compensation Source: Lenders Compliance Group Blog By: Jonathan Foxx, President and Managing Director As if the confusion caused by the FRB's lack of substantive guidance regarding TILA loan originator compensation were not enough for the industry to absorb, the FRB now sallies into adversely affecting another market segment of the residential real estate finance industry: affiliates.  It is one thing for the FRB to find regulatory means to implement Dodd-Frank; however, it is unacceptable to discombobulate affiliate relationships by an overreaching interpretation regarding loan originator compensation in a way that amplifies the confusion.   Action is
    Read More
  • Compensation: One Statute Too Many?

    Compensation: One Statute Too Many? Source: Lenders Compliance Group Blog BY: Jonathan Foxx, President and Managing Director As I've previously notified you, I am writing an article on the loan officer compensation requirements that are due to go into effect on April 1, 2011. While I have been writing the article, in the current environment some of our clients seem to be forming a sort of siege mentality. And I can't blame them, since there is so much confusion and, more substantively, the actual reading of federal staff commentaries to specific statutes in the revised TILA are causing them
    Read More
  • Financial Services Committee to Review LO Compensation

    In their Oversight Plan for the One Hundred Twelfth Congress, the Financial Services Committee includes plans to review the loan originator compensation rules due to take effect on April 1, 2011.  With the opening of each new Congressional session, each committee is required to file their Oversight Plan, which lays out their legislative agenda for the new session. Following calls by the Mortgage Bankers Association, National Association of Mortgage Brokers and the Small Business Administration to the Federal Reserve asking for additional guidance and potential delay of implementation of the compensation rules, the Oversight Plan calls on the committee
    Read More