COMES NOW the Senate! (Loan Originator Compensation)

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Last week I outlined the salient aspects of lawsuits against the Federal Reserve System (FRB) filed by the National Association of Independent Housing Professionals (NAIHP) [filed 3/7/11], followed by the National Association of Mortgage Brokers (NAMB) [filed 3/9/11], respectively, NAIHP v FRB: David v. Goliath, and NAMB v FRB: David 2.0 v. Goliath. On March 10, 2011, the FRB moved to consolidate the two related cases on the basis that both challenge the FRB's loan originator compensation rule. This is not an uncommon opening gambit, so let's not dwell on legal strategy for the time being.

More importantly, on March 11, 2011 two prominent Senators sent a letter to the FRB (Letter), unequivocally requesting a delay of the April 1, 2011 effective date. A brief outline of the Letter, therefore, is in order.

ARTICLE SECTIONS:

The Signatories

Unintended Consequences

Left in Limbo

Defense to Foreclosure

FRB Defers Rulemakings - Except For One Rule In Particular!

The Big Get Bigger and The Smaller Fail

Delay Requested - A Growing Furor

Those now publicly objecting to the Rule, for various reasons, include major industry organizations, such as the National Association of Independent Housing Professionals (NAIHP), National Association of Mortgage Brokers (NAMB), Impact Mortgage Management Advocacy & Advisory Group (IMMAAG), Mortgage Bankers Association (MBA), Community Mortgage Banking Project (CMBP), Consumer Mortgage Coalition (CMC). National Association of Homebuilders (NAHB), National Association of Realtors (NAR), Real Estate Services Providers Council, Inc. (RESPRO), and the The Realty Alliance.

Those filing suits against the FRB are National Association of Independent Housing Professionals (NAIHP) and the National Association of Mortgage Brokers (NAMB).

And Senators David Vitter and Jon Tester have joined the attempts to stay the FRB's effective date.

Next up, let's hear from the House!

ARTICLE CONTAINS LINKS to our Library for a copy of the Letter and the Motion to Consolidate.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Jonathan Foxx, Lenders Compliance Group | Attorney Advertising

Written by:

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