Here are a few more details about the Obama Administrationâs proposed Consumer Financial Protection Agency and how it affects loan brokers: the CFPA can âimpose on mortgage brokers a duty of best execution with respect to available mortgage loans and a duty to determine affordability for borrowers.â A Treasury Department white paper on the CFPA plan notes that loan brokers âoften advertise their trustworthiness as advisors on difficult mortgage decisionsâ but notes they often accept âside payments from product providers.â I would assume those side payments are yield spread premiums. As for brokers advertising their skills, I canât say Iâve seen too many direct mail pieces lately. And in case you missed it: late Tuesday Treasury sent a 152-page legislative proposal on the CFPA to Capitol Hill. Let the games begin...
CORRECTION: In yesterdayâs column I mistakenly said that the new government unemployment numbers will be released Friday. Those figures will be released Thursday because of the July 4 holiday. Sorry about that.
