The National Association of Independent Housing Professionals, in a new comment letter to the CFPB, asks the agency to exclude all Fannie Mae, Freddie Mac and government mortgages from coverage under proposals that could radically alter how loan officers earn their pay.
The young trade group, headed by former NAMB official Marc Savitt, argues that the compensation rules should only apply on “high cost” and subprime loans.
Fannie, Freddie and FHA loans currently play a role in roughly 90% of all new loans being written today, according to figures compiled by National Mortgage News and the Quarterly Data Report.
The trade group, and four affiliated organizations, urges the Consumer Financial Protection Bureau, to use its “exemption authority” under the Dodd-Frank Act to preserve the current compensation system and protect consumers.
NAIHP, in its letter, also says loan brokers have been unfairly portrayed as the villains of the housing/mortgage crisis, leading to a “bias” and “onslaught of rules and regulations” specific to mortgage brokers.
When it comes to regulation, licensing, and training, the trade group wants a level playing field between depository loan officers and nonbank LOs, and suggests that over “the past several years some federally chartered banks have proven to be less than trustworthy” in the mortgage process, offering applicants “onerous mortgage products.”
NAIHP also wants a level playing field for what it calls mortgage “creditors” and non creditors, equating ‘yield spread premiums’ with ‘servicing-released premiums.’
NAMB stands for National Association of Mortgage Brokers. NAIHP represents loan officers, brokers and appraisers.
