Less than 30 days before the Federal Reserve’s guidelines go into effect, the agency is hosting a webinar to provide updated information and answer questions about the new regulatory requirements for loan originator compensation.
Drafted last year by the FRB, the rule was intended to prevent mortgage brokers and loan officers from increasing their own compensation by raising consumer loan costs, such as by increasing the interest rate or points. Several trade groups—one even filed a lawsuit on Monday—requested the Fed delay the rule, but the webinar seems to indicate the agency plans to enforce the rule starting April 1, 2011.
“The new rules apply to compensation that is paid to mortgage brokers and the companies that employ them, as well as mortgage loan officers employed by depository institutions and other lenders,” said the Fed announcement. “The rules also cover companies that originate and close loans in their own name using table funding from a third party.”
The National Attorneys from the Board of Governors’ Division of Consumer and Community Affairs will be on the call to answer questions from participants.
To sign up for the webinar, see here.