LO Compensation Rule is Now in Effect
On Tuesday, April 5, the US Court of Appeals for the District of Columbia ruled against a requested stay of implementation of the Loan Originator Compensation rule. The National Association of Mortgage Brokers (NAMB) and the National Association of Independent Housing Professionals (NAIHP) had filed suit to stop the implementation of the rule. Three circuit-court judges ordered the motions be denied on the grounds that NAMB and the NAIHP did not satisfy “the stringent standards required for a stay pending appeal.” The original effective date of April 1, 2011 was delayed, but the rule became immediately effective on April 5, when the Appellate Court denied the request.
To help you comply, MCA is now offering three different LO Compensation Policy templates for wholesale lenders, brokers, and retail correspondents. Depending on the volume of requests, we can generally complete your policy within 48 hours. Visit our website to learn more about our LO Compensation Policy or call 877-250-5243.
HUD Issues Guidance on GFE Completion in Response to the LO Compensation Rule
On March 19, HUD issued its quarterly issue of RESPA Roundup. In this issue, HUD clarifies RESPA requirements related to proper disclosure on the GFE and HUD-1 in relation to the Federal Reserve’s Loan Originator Compensation Rule. MCA encourages you to review the HUD guidance on how to properly complete the GFE and HUD-1 now that the LO Comp rule is in effect. Visit HUD.gov.
Tags: hud gfe guidance, lo comp, LO compensation, lo compensation stay, loan officer compnesation, loan originator compensation, respa roundup
