The National Association of Mortgage Professionals (NAMB) has sued the Federal Reserve to block a proposed rule that would bar mortgage brokers from being paid by commission on mortgages written.
The financial reform act of last year mandated the rule change, which was aimed at removing incentives to sell borrowers mortgages that would not be in their best interest.
"The Rule's loan restrictions are causing the NAMB and its members immediate, devastating and irrevocable harm," NAMB wrote in its filing before the U.S. District Court for the District of Columbia. "Mortgage brokers are already losing their life blood–their loan officers–and planning to cease their operations and close their doors as a direct result" of the rule, the association argued.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
