An appellate court in Washington late Thursday night granted a stay delaying implementation of the Federal Reserve's loan officer compensation rule until April 5.
At press time it was unclear what effect it might have on both broker and loan officer compensation plans created by lenders.
"The stay is good until at least the fifth," said Mike D'Alonzo, president of the National Association of Mortgage Brokers.
According to an attorney representing NAMB, "the Federal Appeals Court needs to analyze the judge’s ruling now that her ruling allows the Federal Reserve Board vast oversight to regulate the entire real estate industry. We maintain the Federal Reserve Board has authority to regulate creditors but not non-creditors involved in any mortgage transaction."
On Thursday NAMB and the National Association of Independent Housing Professionals filed an appeal in circuit court in Washington D.C. Last month the two trade groups sued, seeking to block the rule. However, on Wednesday, U.S. District Court Judge Beryl Howell denied a preliminary injunction aimed at halting the rule, while affirming the central bank's authority to issue new regulations. (See related story on this website.)
