On Wednesday industry officials met with the Consumer Financial Protection Bureau to discuss the agency’s new proposal to reengineer how loan officers and brokers can make a living. To call it a nightmare might be an understatement, we were told by attendees. “No one came away happy,” said one LO, requesting his name not be used. The general feeling is that flat fee compensation of any type will destroy nonbanks and brokers and hand the mortgage industry over to the depositories. One thing is clear: confusion reigns concerning what exactly the CFPB is proposing. Some participants fear the agency itself doesn’t know. CFPB will issue a final proposed rule for comment sometime this summer.
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