The National Association of Independent Housing Professionals announced that its board has voted to withdraw the association’s lawsuit against the Federal Reserve Board over the Fed’s loan officer compensation rule, which went into effect earlier this month. The Niche Report covered the action late last week.
A court of appeals granted a weeklong stay on the implementation of the rule following an original ruling which denied the delay of the rule. The suit was filed by the NAIHP and the National Association of Mortgage Brokers in March, and the stay was lifted on April 5.
“In our opinion, continuing with the appeal would be unwise; as it is unlikely a third ruling by the court would be different from the first two. Any further appeal would be heard by the same three judges who recently lifted the ‘stay,'” said NAIHP President Marc Savitt, as reported in The Niche Report. “Our legal team prepared an outstanding case with overwhelming evidence, which was ignored by the court.”
Also in the report, Savitt is quoted as saying NAIHP still has the ability to reinstate the lawsuit and that the organization is “well advanced into alternative options for revoking, what has already proven to be one of the most anti-consumer, anti-small business rules the board has ever promulgated.”
Written by Elizabeth Ecker