Loan Officer Compensation gone wrong. All that is wrong in Washington
CONSUMERS: The Federal Reserve just made loans more expensive…
The Federal Reserve Bank (which is NOT a government agency, but a PRIVATE BANK) was able to convince the Courts to allow their asinine sweeping new lender rules to take effect (April 5th) while the case winds it’s way through the court system. Below is simple video from TBWS Daily which puts the rule into perspective.
Buying bananas, or buying a home… Consumers don’t care what the seller makes, they just care that they shopped, and got the best possible deal in the market. But take away competition (can your hear me Washington?), and everyone suffers. In July, the Dodd/Frank Financial Reform law will come into play making mortgages even more expensive and costly to consumers with even less options, except going to the overpriced banks!
What are your thoughts?
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).
Federal Reserve Board files Motion to Consolidate NAIHP & NAMB Lawsuits
The Federal Reserve Board filed a Motion in U.S. District Court to consolidate lawsuits filed against them by the National Association of Independent Housing Professionals (NAIHP) and the National Association of Mortgage Brokers (NAMB).
This move was predictable by the Fed, according to Marc Savitt, NAIHP President. The only reason NAMB was originally assigned a separate Judge, was because their legal counsel failed to acknowledge another related case (NAIHP), had previously been filed.
NAIHP has always believed a united front, would enable the industry to prevail in this matter.
Savitt indicated he is looking forward to working with NAMB to achieve success for consumers and the mortgage and housing industry, while NAMB’s attitude appears to be very negative towards NAIHP?
I’ve read both lawsuits. I’m no big shot lawyer. In my humble opinion, I like the NAIHP suit a LOT better?
NAMB’s lawsuit seeks to obtain a temporary restraining order, and is using different arguments than the lawsuit filed by NAIHP on March 7th.
The National Association of Independent Housing Professionals (NAIHP) Files Suit Against The Federal Reserve over Loan Originator Compensation Rule!!
The Federal Reserve Board has enacted rules which will severely limited consumer choice, increase closing costs, increase interest rates, destroy small lenders everywhere, bankrupt Loan Officers, all while increasing profits for banks.
The first of at least three lawsuits and restraining orders have finally been filed to stop the madness and overstepping of government, which is set to to start April 1, 2011. Read more at http://naihp.org, and watch the video below from Frank and Brian of TBSWdailyshow.com
If you need a home loan in MN, better apply and lock before April 1, 2011