Points and fees cap won't change without broker involvement

by Adam Smith16 Sep 2014
An industry association leader has said mortgage originators will need to get more involved if they are to see compensation rules changed by the CFPB.

Speaking to the National Association of Mortgage Professionals National Conference in Las Vegas, NAMB Government Affairs chair Rick Bettencourt has called on brokers to make their voices heard. Bettencourt said the association has a good working relationship with the CFPB, but argued that the Bureau is unlikely to change the 3% points and fees cap unless it is presented with hard data.

“They’ve indicated in a very nice way that, ‘You’ve been here four times. You’ve discussed this issue four times and still nothing has been done. What does that tell you?’ I think if we had more members and more member activity we might have had a better shot at rebuttal, but they are a data-driven organization. That’s how they run their entire system. They said, ‘If you don’t have some additional information on the adverse impact that this rule is having on the broker community then we can’t do anything.’ In order to do something they have to go into Dodd-Frank and fix it,” Bettencourt said.

Bettencourt said the CFPB wants hard data on the impact of the rule, which has thus far been difficult to solicit.

“We have 5,300 members, and we recently did a survey where we went out to our members and we got 75 responses. That’s pretty bad.”

Bettencourt urged mortgage professionals to help gather data to present to the Bureau.

“The data we’re going to be looking for is asking for very pointed data as far as any information you know as to any impact this rule has had. How many brokers have gone out of business? How many loan officers have switched from a broker model to a non-depository model? How many borrowers have had to go down to a bank or non-depository to get the loan?” he said.


  • by mortgageguy | 9/16/2014 10:36:17 AM

    When the head of the CFPB says publicly “Consumers will not be bamboozled by tricky tactics...” I think we know what they think of us and our business.

  • by Griff | 9/16/2014 10:45:29 AM

    Consumers will be bamboozled by the cfpb and the appraisal independence rule tricky tactics. Bamboozled by appraisers who would be out of a job except for AIR. Consumers who don't have lender choice or being misled by different methods of disclosure.

  • by Michael | 9/16/2014 11:36:07 AM

    75 responses from 5,300 members!? This speaks loud and clear. Mortgage brokers have always been and always will be complacent and LAZY!!! They just will NOT get involved, they want someone else to do it for them. This has been their history during the 30 years I have been in this business. I hate to say it but the questions I heard from those attending the Las Vegas convention were an embarrassment! Questions that only demonstrated that all too many in this industry DO NOT know the rules that regulate us, and do not know product guidelines. Many of the statements made by these attendees, and sadly some of the speakers, demonstrated that many of them are still operating on the dark gray side of honesty, integrity, and ethics.

    Yes, there are a FEW of us bashing our heads against a brick wall trying desperately to make things right and fair; only to get a headache and bleed profusely.

    I did my own study of those attending the convention; most were us old guys with 20, 30, or more years of experience. "Why are we hanging around in this industry" was the questions so many asked by many. The answer, "because we have been doing this for so long we don't know what else to do". Sadly, many of those still hanging around don't even like this business any more. Very few young originators attended. Why did they abandon the industry that allowed them to make more money than anything else they have ever don or ever will do? I would estimate that 90% of those I used to see at previous conventions, weren't at this one. They have either given up or are so unmotivated by the last 7 years disappointment that they are on the verge of giving up.

    And then of course there was a large contingent of missing who are no longer working for a mortgage broker or who have closed down their companies and fled to the sanctuary of the banks and direct lenders; all in the name of non-disclosure and undisclosed income.

    Sadly the consumer is getting hurt the most by Dodd-Frank, the CFPB, and LO compensation regulations.

    Will mortgage brokers ever change their mindset? Will the mortgage bankers with wholesale divisions ever come to the aid of mortgage brokers and put their money and power behind us? Will the National Association of Realtors see the light before the dark finally closes in and put their power and financial clout in our arena?

    I could go on and on here...but I too am tired. The bleeding won't stop, my headache has gotten worse, and .....


Should CFPB have more supervision over credit agencies?