RISMEDIA, August 18, 2010—NAMB applauded the Federal Reserve Board yesterday (FRB) for issuing its final rule changing the way loan originators may receive compensation, as a benefit to consumers, by preventing unfair, abusive, or deceptive lending practices.
“The Federal Reserve Board’s final rule is a great consumer victory,” said NAMB President William Howe, CRMS. “The rule allows consumers to shop for a loan through a level playing field of all loan originators, regardless if they work at banks, lenders or credit unions. NAMB has long advocated for all loan originators to be treated the same, and the Final Rule does just that.”
The Final Rule also prevents consumers from being “steered” into less favorable loan terms to increase a originator’s compensation, and establishes safe harbor requirements to ensure a consumer’s interest is first.
“NAMB believes the Final Rule will lead to better financial understanding for consumers and looks forward to continue working with the Federal Reserve Board on issues facing the mortgage and housing industries.”
About NAMB – The Association of Mortgage Professionals is the voice of the mortgage broker industry with members in all 50 states and the District of Columbia. NAMB provides education, certification and government affairs representation for the mortgage broker industry.