The Consumer Financial Protection Bureau says it is listening to mortgage industry feedback in its loan originator compensation rule making. A federal official told industry members Tuesday that its recent rule making discussion is far from final, according to a report from National Mortgage News. Additionally, the CFPB says it will consider industry input as it formulates its final rules in the coming months.
The CFPB recently outlined the potential rules regarding loan originator compensation, including a point that could be “problematic” for reverse mortgage originators, as noted in a memo by National Reverse Mortgage Lenders Association legal counsel. NRMLA has asked the CFPB to alter its rule making accordingly.
Nothing is set in stone, the CFPB stressed to attendees of the Mortgage Bankers Association annual wholesale conference this week. But mortgage industry representatives were skeptical, according to the Origination News report:
“These are not final rules,” Ann Thompson, who works in the Office of Nonbank Supervision at the Consumer Financial Protection Bureau, stressed in response to concerns from attendees at the New York Association of Mortgage Brokers’ annual wholesale conference that the proposals could put their businesses at a disadvantage to others. “Your viewpoint is valuable. The bureau is not trying to create an asymmetric market.”
Marc Savitt, president at the National Association of Independent Housing Professionals and an industry veteran with a long history of involvement in regulatory advocacy work, told attendees he shared their concerns and that they should be part of discussions that could shape the rules.
“I have a problem, and I know a lot of you do as well, with the government coming in…and telling you how much I can make, or telling me how I can charge my customers when my competition doesn’t have to follow the same rules that I do,” Savitt said, noting that he was not singling out the CFPB in his comments, but referring more generally to regulation.
Thompson said the rules would apply to all entities the CFPB regulates but noted that some depositories have different regulators. Some of those depository regulators may have similar rules, she said.
Read the original National Mortgage News article.
Written by Elizabeth Ecker