Late Thursday, a stay was granted by the U.S. Court of Appeals on the Fed’s loan officer compensation rule. The National Association of Mortgage Brokers (NAMB) announced the stay on its website and Facebook page late last night. The rule will be delayed until a hearing on April 5.
After months of preparation for the rule implementation, scheduled for April 1, NAMB and the National Association of Independent Housing Professionals filed lawsuits against the Fed in an effort to delay implementation of the rule. After a hearing earlier this week, the Court denied motions for a temporary restraining order and preliminary injunction against the rule.
NAMB said subsequently to members through its Facebook page: “It’s not over yet: we are filing an appeal as we speak, the appeal should be heard very quickly.”
While many large reverse mortgage lenders have already announced new compensation plans that are largely based on lender-paid compensation, many were still hoping the rule would be delayed. One broker told RMD yesterday that in sitting down with several peers, they each had different interpretations of the same new plans.
See the court documents announcing the stay here
Source: Reverse Mortgage Daily