The Consumer Financial Protection Bureau needs to more clearly interpret regulations such as the loan officer compensation rule, according to executives participating in a roundtable discussion at the National Association of Mortgage Brokers' recent NAMB/West show.
“One of the looming issues we are going to have to deal with…eventually is how the LO comp rule is being examined by the CFPB,” NAMB lobbyist Roy DeLoach said.
“What really concerns us is what the CFPB is going to be enforcing, what their agenda is going to be and how they are going to interpret these rules,” said NAMB treasurer John Councilman. “I think the Federal Reserve was very negligent in [fleshing out] these rules and we have no idea actually how the loan officer comp rule is to be precisely applied.
“We're still guessing at it,” he added. “It is being implemented differently by various wholesale lenders, and even retail lenders, very differently. They can't all be right. Somebody is doing it very incorrectly. We're very, very concerned about that.
“Everybody in this industry is in for a terrible awakening if we don't solve this problem and get a better idea of what the enforcement is going to be and what is supposed to be done as far as the loan officer comp rule and a lot of these other rules, actually.”
