The National Association of Mortgage Brokers (NAMB) scored a major victory for the entire mortgage industry late Thursday night as their expedited appeal to the United States Court of Appeals for the District of Columbia was granted and a stay implementation of the final rule on loan officer compensation, officially known as Regulation Z; Docket No. R-1366, Truth-in-Lending, was ruled pending appeal. The stay delays the enforcement date of the LO compensation rule which was to take effect beginning Friday, April 1, 2011.
The Appellate Court stay was granted by Appellate Judges Karen LeCraft Henderson, David Tatel and Brett M. Kavanaugh, and a date of appeal was set for this coming Tuesday, April 5, 2011. This news breaks just one day after Judge Beryl Howell of U.S. District Court for the District of Columbia denied NAMB's request for a temporary restraining order (TRO) against the Federal Reserve Board’s loan originator compensation rule prior to its April 1st enforcement.
"Now that the stay has been granted, we need the industry's assistance now more than ever," said NAMB President Mike D'Alonzo. "If you are not a member of NAMB, please join. If you are a member, please ask a non-member to join. There is tremendous strength in numbers! We have a fight on our hands and we need all the support we can get. Thank you again to all those who have supported NAMB."
NAMB has been leading the charge on behalf of the entire mortgage industry in an effort to fight to preserve and protect the mortgage broker from the LO compensation rule, which, if enacted, would impact credit opportunities to consumers.
"We are thrilled that the Appellate Court has granted a stay," said Mike Anderson, CRMS, Government Affairs Committee Chair of NAMB. "You can now keep locking those loans on the old LO compensation plan!"