In the latest regarding the Federal Reserve’s pending loan officer compensation rule, senators David Vitter (R-La.) and Jon Tester (D-Mont.) co-authored a letter sent March 11 to Fed Chairman Ben Bernanke, which requests a delay in the implementation of the rule.
“We are concerned that this rule, which becomes effective on April 1, 2011, may have the unintended effect of further increasing concentration in the home mortgage market,” the letter stated.
The letter follows two recent lawsuits that aim to impede implementation of the rule. The first was filed early last week by the National Association of Independent Housing Professionals and the second came from the National Association of Mortgage Brokers, which said the rule “could cause devastating and irreparable harm to small business mortgage brokers, their loan officers and their entire staff as of the rule’s April 1, 2011 implementation date.”
The Fed later announced it hoped to consolidate those two suits.
View a copy of the letter.
Written by Elizabeth Ecker