NAMB argues its case to delay April 1, 2011 enforcement date
MARCH 29, 2011?The National Association of Mortgage Brokers (NAMB) took significant strides today in delaying the April 1, 2011 enforcement date set by the Federal Reserve Board?s (FRB) loan originator compensation rule, Regulation Z; Docket No. R-1366, Truth-in-Lending. The rule prohibits mortgage brokers from paying their loan originators commissions from fees paid by the consumer, which could inflict harm to small business mortgage brokers, their loan officers and their entire staff if enacted.
A hearing was held today in U.S. District Court for the District of Columbia before Judge Beryl Howell, where NAMB and its attorneys presented proof and oral arguments as to why the Court should grant a temporary restraining order (TRO) against the FRB?s LO compensation rule.
?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, Government Affairs Committee Chair of NAMB.
NAMB filed its initial suit on March 9, 2011 against the Board of Governors of the FRB seeking temporary and preliminary restraints to delay implementation of the LO compensation rule. NAMB?s suit argued that the FRB?s LO compensation rule, as presently drafted, will "cause devastating and irreparable harm to small business mortgage brokers, their loan officers and their entire staff as of its April 1, 2011 implementation date."
?The Court had questions concerning the plaintiff?s position that Judge Howell wanted answered, and NAMB and its attorneys responded accordingly,? said Anderson. ?NAMB requested that the Court render a decision and grant a temporary restraining order and a preliminary injunction prior to the April 1st implementation date.?
The National Association of Mortgage Brokers (NAMB)?The Association of Mortgage Professionals, is a trade association of mortgage professionals with membership in all 50 states and the District of Columbia. NAMB provides education, certification and government affairs representation for the mortgage industry. For more information, visit NAMB.org.