NAMB—The Association of Mortgage Professionals has announced that it has been invited by the Consumer Financial Protection Bureau (CFPB) on Tuesday, Nov. 5 to take part in a sit-down conference to discuss the role the mortgage broker plays in the recovery of the nation’s economic recovery. Representing NAMB at the meeting will be association President Don Frommeyer, CRMS, senior vice president of Amtrust Mortgage Funding in Carmel, Ind. Frommeyer will be joined by the leadership of other housing finance-related trade associations, including the Mortgage Bankers Association (MBA), National Association of Realtors (NAR), Real Estate Services Providers Council Inc. (RESPRO), and Impact Mortgage Management Advocacy & Advisory Group (IMMAAG), among others.
“I think what the CFPB is trying to do, and this is operating without any sort of itinerary from the CFPB as to what the meeting is about, is to figure out exactly the best way to move forward,” Frommeyer said. “They’re trying to get a better handle on the situation and educate themselves as much as possible. The CFPB really wants to know how the entire mortgage process works and that is why they are seeking our opinions.”
NAMB recently submitted a letter to the CFPB to detail the mandatory credits a broker is required to provide consumers when rate sheet pricing exceeds the broker’s contractually obligated Lender Paid Compensation agreement. NAMB contends that the mortgage broker community provides mortgage credits back to the consumer that range in the billions annually, thus stimulating the nation's economy. In order to demonstrate this, NAMB polled four broker entities and gathered the data to present to the CFPB.
NAMB and other trade associations have had dealings with the CFPB in the past, however; the CFPB remains a fairly cloak-and-dagger organization, even amidst promises of greater transparency.
“The CFPB has been very receptive to a lot of different things, especially when dealing with mortgage rebates and smaller companies, also the fact that you don’t want to push mortgage brokers into mini-correspondents, because that would defeat your purpose," said Frommeyer. "Those people have unlimited abilities, they don’t have loan officer compensation fees from companies. No contracts or agreements stating the maximum they get."
The CFPB's Ability-to-Repay and Qualified Mortgage Rule is set to take effect on Jan. 10, 2014. As currently written, the stringent requirements of the CFPB’s rules will force many brokers nationwide out of business. NAMB seeks to continue to play a major role in the recovery of the U.S. housing market and the recovery of the American economy nationwide.
"The invitation I received, the gist of it is, really, to discuss mortgage brokers,” Frommeyer said. “At this point in time, I have to believe that part of the Nov. 5th meeting has to do with our recent letter submitted to the CFPB that basically provided information on mortgage rebates and how much money brokers are kicking back to the consumer.”
As of right now, the CFPB isn’t telling anyone what the meeting is about, however; hopes are reportedly high on all fronts from the associations rumored to be in attendance.