Trade Group Still Contemplating Lawsuit Against Fed

We can't yet tell you the name of the trade group that wants to sue the Federal Reserve over its loan officer compensation rule, but if a lawsuit is filed, it will happen this month. The LO compensation rule goes into effect April 1 and it's unclear exactly what it will mean for the nation's remaining 5,000 loan brokerage firms. One LO told me wholesalers have already figured out what they are willing to pay, noting that it will be a "flat rate." He said for every $1 million in loans an LO brings in, he will garner $5,000 in gross commissions. The next question is obvious: can LOs survive on that? Meanwhile, I recently received a marketing email from a firm (who I will not name because I don't want to give them any free publicity) that claims this: "The loan officer compensation changes going into effect April 1, 2011 are currently viewed as a huge benefit for all mortgage brokers, because it will require banks to pay loan officers in 2011 the same way that the mortgage brokers have been paying loan officers for all of 2010." Confused? Join the club. If you have any thoughts drop me an email at: Paul.Muolo@SourceMedia.com...