The National Association of Independent Housing Professionals, in a new comment letter, is asking the Consumer Financial Protection Bureau to allow for "dual compensation" to be earned by loan brokers.
Writing to CFPB, the trade group notes that as proposed, the agency’s loan officer compensation rule “strictly prohibits brokers and their originators from being compensated by both the borrower and creditor.”
NAIHP, whose membership includes mostly brokers and appraisers, believes it’s unfair to allow for the paying of servicing-released premiums to mortgage banking firms (creditors) while banning dual compensation.
“While some have argued that SRP is a function of the secondary market, the fact remains, like yield-spread premiums, SRP is built into the consumer’s interest rate,” writes trade group president Marc Savitt and fellow NAIHP officials.
Savitt argues that many consumers “who are denied financing due to higher than acceptable ratios, would have a better chance at qualifying if they were allowed to separate their origination costs between the rate and the upfront fees.”
The CFPB’s
