The Federal Reserve Board said it will host a webinar March 17 to provide "updated information" and answer questions about its controversial loan officer compensation rule, which goes into effect April 1.
The announcement of the webinar came on Monday, just before the agency was sued by a broker trade group over the same rule. (See related story on the
Industry officials have been pressing Fed staff for written guidance on compliance issues. So far, trade groups and industry attorneys have received only verbal advice from Fed staffers. "It is frustrating that we have to rely on informal advice and antidotes," said Kristie Kully, an attorney with K&L Gates in Washington.
It appears the webinar is an attempt to address that frustration. Mortgage banking consultant Brian Chappelle said lenders and mortgage brokers will have a chance to hear Fed staff directly.
"We understand that the Fed will address all of the controversial issues surrounding the rule," Chappelle said.
Lenders One chief executive Scott Stern noted the Fed is completely changing the industry's compensation structure that has been in place for nearly 50 years, saying the agency will not provide any written guidance.
"People won't know if they are doing something wrong or not because there is no written guidance," he said prior to the Fed's announcement about the webinar.
