Loan Officer Compensation gone wrong. All that is wrong in Washington
The Federal Reserve has been busted in a major scandal.
St Paul, MN: On April 1, 2011 – sweeping new mortgage broker and mortgage lender changes go into effect which will stifle competition, reduce loan options, extend the housing market recover time, and increase interest rates and closing costs to home owners everywhere.
The rules made no sense to anyone, yet the Federal Reserve marches on with a cocky attitude, completely unwilling to listen to trade groups and those in the mortgage business explaining how damaging these new rules will be.
NOW WE KNOW WHY! People who previously did studies which produced positive outlooks towards brokers and small lenders NOW WORK FOR THE FEDERAL RESERVE BOARD and magically have a different attitude AND have have their voices silenced – WOW!
Another great video from Frank and Brian over at www.tbwsdailyshow.com
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Senators David Vitter (R-LA) and John Tester (D-MT) have written a bi-partisan letter to Chairman Bernanke of the Federal Reserve Board asking him to STOP the boards overreach of the TILA (Truth-in-Lending) act as it pertains to Loan Officer Compensation
The rule, set to start April 1, 2011 dramatically changes and overburdens the mortgage lending world, which could inflict harm to small business mortgage brokers, their loan officers and their entire staff.
The letter says ““We remain concerned the Federal Reserve has not fully evaluated the impact of this rule on the housing market,” and ““We urge you to delay the implementation of the loan originator compensation rule so that these provisions can be better coordinated with forthcoming TILA regulations and the impacts of loan concentration can be more thoroughly studied.”
Two lawsuits were also filed this week asking for injunctions against the Federal Reserve over the rule. One by NAMB (the Nation Association of Mortgage Brokers), and the other by NAIHP (National Association of Independent Housing Professionals).