NAIHP Statement on Release of the LO Comp Rule

by 29 Jan 2013

(NAIHP) -- The CFPB’s recently released rule on loan originator compensation, appears to be a continuation of the Fed's same rule, which was implemented in April of 2011.

“However, we also see the continuation of picking winners and losers, with respect to issues such as the prohibition on Dual Compensation for mortgage brokers. We assume the CFPB understands that Dual Compensation isn't Double Compensation, otherwise why would they allow creditors to receive it?” said, Marc Savitt-NAIHP’s President.

In the rule the CFPB goes to great lengths to equate steering and confusion on consumer loyalty with mortgage brokers, apparently ignoring historic abuses perpetrated by Countrywide and other creditors. Language from the rule states, "The Dodd-Frank Act codifies this prohibition, which was designed to address consumer confusion over mortgage broker loyalties where the brokers were receiving payments from both consumer and creditor."

“Yet, the only origination channel (mortgage brokers) that has been disclosing all their compensation since 1992 was once again banned from receiving this form of legitimate compensation.,” stated, Brian Benjamin, NAIHP Government Affairs Chair.

On the issue of loan originator qualifications, it appears the CFPB has granted creditors "self certification." The question is, why? NAIHP believes consumers would be better protected if all originators conformed to the same qualifications and were administered under the Safe Act.

"I keep looking, but I'm not finding that level playing field everyone's talking about," said Marc Savitt, NAIHP President

Savitt further stated, “As the first national trade association to file suit over this issue in 2011, NAIHP pledges it will continue to aggressively represent the interests of mortgage brokers, loan originators and all small business housing professionals. We will continue working with the House and Senate to limit the unintended consequences that harm both consumers and small business.”

The National Association of Independent Housing Professionals (NAIHP) is a Washington, DC based grassroots coalition, comprised of mortgage brokers, loan originators, mortgage bankers, real estate appraisers, real estate agents, settlement agents and credit reporting agencies.

In 2010, NAIHP was chosen by the Financial Crisis Inquiry Commission to represent mortgage brokers and loan originators, during the commission’s investigation into what caused the mortgage meltdown. 


  • by Bryan Buck | 1/30/2013 7:49:08 PM

    Let me help answer Marc's questions: The reason why "dual" compensation is not allowed for brokers but is for creditors, and why brokers are required to comply with the misnamed "Safe" Act and creditors are not is because the CFPB is designed to put the individual and small brokers/bankers out of business so ALL mtg. activity is driven to the big zombie banks that pay billions of dollars in lobbying kickbacks. Marc: If you lie down with dogs you get fleas; quit playing in an arena that pretends what is going on is legitimate, and fight back against an immoral, unjust, and UNCONSTITUTIONALLY designed and appointed bureaucracy with unlimited deep pockets and no accountability or oversight.


Is TILA-RESPA a good or bad thing long term?