Peter Idziak (envisioned top), a senior associate and home mortgage attorney at Polunsky Beitel Green, stated that despite the changes proposed by President Donald Trump in his housing executive order, none of those changes had anything to do with LO Comp.
“What is fascinating about the executive order that isn’t in there is anything on revising or rescinding the loan producer compensation guideline,” Idziak informed Mortgage Professional America. “That is something the CFPB highlighted as a concern, with the rescission word after it. But we haven’t really heard anything ever since.
“That is one location where, if you’re wanting to cost, the market has grumbled about numerous aspects of the existing rule that we feel hinder or straight-out prevent LOs from decreasing settlement to benefit debtors in specific circumstances.”
Movement behind the scenes
While there have not been any public modifications revealed for LO Compensation, there have actually been continued conversations on Capitol Hill. Kimber White, president of the National Association of Mortgage Brokers (NAMB), told Mortgage Professional America that he has actually continued going over the issue with the CFPB, including previous heads of the company Rohit Chopra and Richard Cordray.
“We’re still working with the CFPB,” White stated. “We’ve had Chopra and we had Cordray both inform us that it had unintended effects, that the 3% cap was supposed to be on the loan originators, not the broker company. We need to fix that.”