The National Association of Mortgage Brokers (NAMB) has had their request for a temporary restraining order (TRO) against the Federal Reserve Board’s loan originator compensation rule denied by Judge Beryl Howell today in U.S. District Court for the District of Columbia. NAMB was seeking a TRO against the Fed rule, officially known as Regulation Z; Docket No. R-1366, Truth-in-Lending, as the rule is set to be enforced as of this coming Friday, April 1, 2011. Judge Beryl Howell denied the National Association of Independent Housing Professionals’ (NAIHP) request for a delay as well.
“We are obviously disappointed in the findings of Judge Howell, but we are not giving up and are immediately filing an appeal,” said Mike Anderson, CRMS of Essential Mortgage, Government Affairs Committee Chair of NAMB. “Judge Howell’s decision was rendered even though she found the rule could cause was irreparable harm. That was shocking to us in hearing this decision.”
The initial hearing was held Tuesday, March 29, 2011 before Judge Howell, where NAMB, NAIHP and their attorneys presented proof and oral arguments as to why the Court should grant a TRO against the LO compensation rule.
However, Judge Howell ruled on Wednesday that “the plaintiffs claim that the Board’s Rule exceeds its authority and is arbitrary and capricious. A general description of the industry and practices that prompted the Board’s concern to promulgate the Rule provides a valuable context in evaluating these challenges.”
“We are asking for an expedited treatment of our appeal, and if that is granted, they will set a briefing schedule,” said Anderson. “We will continue our lobbying pressure and will continue to fight and get changes.”