Wow…whether or not you are for or against the Fed’s rule on how mortgage originators can be compensated…you cannot deny that this has been a freaking roller coaster. Here are updates from my earlier post:
UPDATE MARCH 28, 2011: NAMB is reporting via Twitter they have been successful in obtaining a temporary restraining order hearing for tomorrow morning.
UPDATE MARCH 29, 2011: Reading on Twitter that the Judge will rule before April 1, 2011 (by Thursday)…and that the Judge asked great questions and requested NAMB not file their temporary restraining order.
UPDATE 6:30 p.m. MARCH 29, 2011: NAMB and NAIHP feel pretty hopeful that LO Comp may be delayed until July for Frank Dodd. A note from NAMB that’s posted in Facebook is in my comments below.
UPDATE MARCH 30, 2011: The Judge rules against the temporary restraining order. View the Judge’s opinion by clicking here.
And now… http://twitter.com/#!/NAMBlive/status/53664096209477632:
Appellate Court grants a stay. Hearing will be on 4/5. RULE IS DELAYED UNTIL THE HEARING #locomp
Nothing on NAMB’s site tonight… they’ve updated Twitter first. NAIHP has this on their Facebook page as well.
PS: How do you feel about loan originator compensation? If you have a mortgage, or are considering a mortgage to purchase a home or refinance, please answer 3 questions on this survey.
So our company (as many) decided to proceed as if the Fed’s rule on LO Comp is not in effect (due to the stay)… we’ll know more on Tuesday.
Some lenders are proceeding as if the Fed’s rule did go into effect today and I’m hearing reports from local lenders that their rates are about 0.25% higher.
So much work has gone into trying to develop new, competitive and fair compensation plans for LOs due to the Feds rule…it’s hard to put a number on how much time and money has been invested…but many still want the rule not to pass because of how much it will cost consumers.
Rhonda, as always you are so on target. My company too (not my actual company but the one I work for;) has gone to great effort to put in place a fair compensation package that will allow loan officers to make a family wage while at the same time protection the consumer.
What I would like to see happen is for the investor overlays to go away. The quality of product that we are delivering to secondary market has never been higher. This is my opinion and I have no source to cite which is something I am going to start doing with vorticity to expose what is fact, and what is somebodies opinion that may have something to gain by spreading misinformation.
It is sad this had to happen because ultimately it is the consumer that is having to pay with higher interest rates and more fee’s.
Yes, the investor overlays should really go.
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