Once again the government is taking out the mortgage crisis on nonbanks, their loan officers and mortgage brokers. On Monday National Mortgage News will publish a more detailed story about the mess, but suffice to say there are many things that rankle nonbanks concerning the Consumer Financial Protection Bureau’s new mortgage compensation rule. The concept of a “flat fee” for loan compensation is at the top of the list, but many also are hopping mad that the young agency gives a walk to banks and nonprofits on their education requirements for mortgage LOs. CFPB’s critics see the megabanks at work here along with the Center for Responsible Lending, and the Self-Help Credit Union, a depository. (The rule supposedly favors these parties.) One trade group official who represents brokers had this to say: “We have 10% of the market and they’re jumping up and down on us?” Another quipped: “I guess this will assure that the banks will survive.” In other words, it could be a long, hot summer in Washington.
