Hate the CFPB’s LO Comp Proposal? Sign This Petition

Loan officers and brokers are none too thrilled with the Consumer Financial Protection Bureau’s 37-page proposal on altering the way loan officers, brokers, and lenders are compensated on all mortgage transactions. Admittedly, it’s just a proposal and a ton of confusion surrounds the whole discussion of “flat fee” compensation. Next week the CFPB and the Small Business Review Panel will hold a private meeting (under the Small Business Regulatory Enforcement Fairness Act) in Washington to discuss the proposal and its ramifications. Selected loan officers have been invited. An official comment period will ensue this summer. Meanwhile, IMMAAG, an advocacy group for brokers, is attacking the proposal by going after the Dodd-Frank Act and has launched a petition at: http://www.change.org/petitions/petition-to-amend-the-dodd-frank-act. As I said before: it’s going to be a long hot summer in Washington.