MBA Lobbies CFPB on LO Comp Rule Changes

Oct 24, 2018

The Mortgage Bankers Association (MBA) gathered nearly 250 senior executives from its member companies to sign a letter to Mick Mulvaney, Acting Director of the Consumer Financial Protection Bureau (CFPB) to make changes to its Loan Originator Compensation rule a "top priority."

The letter recommended that the CFPB make three changes to the rule: Permit voluntary reductions by Loan Officers to their compensation in response to competition, allow reductions to compensation when the originator makes an error, and allow variable compensation for loans made under housing finance agency programs. The MBA members also called on the CPFB to clarify the rule prohibiting compensation based on loan terms or proxies for terms.

"The LO Comp rule causes serious problems for industry and consumers due to its inflexible prohibitions on adjusting compensation and its amorphous definition for what constitutes a proxy for a loan's term or conditions," the letter said. "The rule harms the efficiency of the mortgage loan market by limiting lenders' ability to compete and consumers' ability to shop."

The MBA letter is the latest request for the CFPB to adjust its policies. Yesterday, a coalition of 33 state attorneys general called on Mulvaney’s agency to continue protecting military service members against predatory lenders under the Military Lending Act (MLA).

“We believe that such a move would significantly harm the servicemembers who live and work in our states and that it would be contrary to the CFPB’s statutory mandate,” the attorneys general wrote. “Protection of our nation’s servicemembers against financial exploitation is a bedrock tenet of federal consumer financial protection law, and it traditionally has been a bipartisan effort.”

About the author

Phil Hall

Link copied

Published

Oct 24, 2018

Analysis and Data

Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

The September jobs report gave the mortgage market something it hasn't had much of lately: downward pressure on Treasury yields.U.S. employers added just 29,000 jobs in September, while the unemployment rate edged up to 4.2%, according to the Bureau of Labor Statistics. The ...

Wholesale

The Loan Store Rebrands As Averra Financial

The wholesale lender is adopting a new identity three years after acquiring Homepoint’s wholesale business and rising to No. 4 in industry rankings

The Loan Store has a new name after a three-year expansion that transformed the once-small wholesale lender into one of the largest players in the broker channel.The Tucson, Arizona-based lender has rebranded as Averra Financial Inc., effective immediately, the company annou...

Nov

Houston, TX

More from

Analysis and Data

Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Analysis and Data

Oct 02, 2026

Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Analysis and Data

Oct 01, 2026

Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Analysis and Data

Sep 29, 2026

Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Analysis and Data

Sep 25, 2026

Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Analysis and Data

Sep 25, 2026

Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Tech

Sep 23, 2026

Popular