Click on the icon above for the latest video message from NAMB Goverment Affairs Chairman, John Hudson.
8/21/2012 The following information is reposted from HAMB Conference Sponsor, Plaza Home Mortgage:
The Dodd-Frank Wall Street Reform and Consumer Protection Act expanded on previous efforts by lawmakers and regulators to strengthen loan originator qualification requirements and regulate industry compensation practices. The Consumer Financial Protection Bureau (CFPB) has published a proposed rule amending Regulation Z (Truth-in-Lending) amendments made by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The proposal would implement changes to current loan originator compensation provisions, which would otherwise become effective in January 2013 under the Dodd-Frank Act.
Earlier in the year, the CFPB considered a flat origination fee that could not vary with the size of the loan. However, after meeting with industry groups, the bureau decided that flat fees would have a disproportionate impact on lower income borrowers and disrupt stability in the mortgage market as it would require radical restructuring of existing pricing structures and practices in the secondary market.
The rule, as proposed, would generally require that, before a creditor or mortgage broker may impose upfront points and/or fees on a consumer, the creditor must make available to the consumer a comparable, alternative loan with no upfront discount points, origination points, or fees that are retained by the creditor, broker, or an affiliate of either (a no points-no fees option).
The proposal would adjust existing rules governing compensation to loan officers and mortgage brokers to provide greater clarity and flexibility. Specifically, the proposal would:
- Continue the general ban on paying or receiving commissions or other loan originator compensation based on the terms of the transaction (other than loan amount), with some refinements:
- The proposal will allow reductions in loan originator compensation to cover unanticipated increases in closing costs from non-affiliated third parties under certain circumstances.
- Clarify and revise restrictions on pooled compensation, profit-sharing and bonus plans for loan originators, depending on the potential incentives to steer consumers to different transaction terms.
- Continue the general ban on loan originators being compensated by both consumers and other parties, with some refinements:
- The proposal would allow mortgage brokers that are paid by the consumer to pay their loan originators a commission on the transaction, so long as the commission is not based on the terms of the transaction.
- Implements a provision requiring both individual loan originators and their employers to be “qualified” and to include their license or registration numbers on certain specified loan documents.
The CFPB is taking comments on the proposed rules governing mortgage loan originations until October 16, 2012. The CFPB plans to issue final rules by January 2013 to meet Dodd-Frank Act requirements. The CFPB is requesting comment on how long to provide for implementation. Plaza encourages you to provide your comments.
3/2/2012 : Update on State Legislative Item (click on Jodie’s Picture to view the update)
Hawaii – State Legislative Items (See update on this item…video message from Pres Jodie Tanga above)
“We are concerned that current bills in the legislature call for raising MLO initial application fees from $500 to$550 (10% increase) and increasing MLO annual license renewal fees from $300 to $400, a 33% increase. The existing fee structure has only been in effect for 2012. And of course follows the substantial fees associated with all new licensing requirements for 2010. Additionally the bill doubles the fees $50 to $100 for all information amendments dealing with changes of address, MLO Sponsors, operating names, and DBA’s….
GOT YOUR ATTENTION YET?….
Once you’ve read the message, use this link to connect to the Hawaii Legislative website for details.
HERE’S WHAT YOU CAN DO TO HELP:
- 1.Write a letter opposing the raising of fees, so soon after the initial new fees of 2010.
- 2. Address Letters re SB 2763 to Sen David Ige (cc copy to Sen Roslyn Baker)
- 3. Address Letters re HB 2501 to Rep Marcus Oshiro (cc copy to Rep Bob Herkes)
- 4. Fax or Email a Formal Letter (Fax recommended as a first choice)
- 5. Note: Only Rep. Marcus Oshiro, does not accept email.
Click to view contact information:
- Ways & Mean Committee Senator David Ige – SB 2763
- House Committee & Finance Rep. Marcus Oshiro – HB 2501 (Does not like email / Prefers fax to 808-586-6201)
- Senator Roslyn Baker (cc a copy – SB 2763)
- Rep Bob Herkes (cc a copy – SB 2501)
Click to view:
- 1/29/2012 – HAMB’s Letter of Testimony opposing HB 2501
- 1/29/2012 – HAMB’s Letter of Testimony opposing SB 2763 (see page 5)
2/3/2012 Message from NAMB Government Affairs Chairman, John Hudson
Click to View
- Namb will support ANY refinance program that will both help consumers and allow ALL channels of origination to participate in order to ensure consumers receive the attention help and support they need.
Click to View