STERBCOW LAW GROUP FILES LAWSUIT ON BEHALF OF THE NATIONAL ASSOCIATION OF MORTGAGE BROKERS "NAMB" AGAINST THE FEDERAL RESERVE SYSTEM ON LOAN OFFICER COMPENSATION RULE
On March 9, 2011, Saul Ewing, LLP; Herman, Herman, Katz & Cotlar, and Sterbcow Law Group LLC, filed a lawsuit on behalf of the National Association of Mortgage Brokers (NAMB) against the Board of Governors Of The Federal Reserve System; Honorable Ben S. Bernanke, Chairman of the Board of Governors of the Federal Reserve System; and Sandra F. Braunstein, Director,Division of Consumer Affairs, Board of Governors of the Federal Reserve System, seeking temporary and preliminary restraints to delay the April 1, 2011 implementation of the loan originator compensation rule under the Truth-in-Lending Act.
The lawsuit, (Case 1:11-cv-00506-RLW) filed in the U.S. District Court for the District of Columbia, is based on the rule prohibiting mortgage brokers from paying their loan officers commissions from fees paid by the consumer, which will cause irreparable harm to small businesses. NAMB is seeking the Federal Reserve Board to avoid the effects of its rule by withdrawing this section of the rule and allowing the Consumer Financial Protection Board to perform its mandated responsibilities in this area.
To follow this lawsuit we encourage you to visit the National Association of Mortgage Brokers website at www.namb.org
If you have any questions about the LO Compensation Rule please fill out the CONTACT US form and we will get back with you.
Comments
On behalf of the mortgage brokerage industry I would like to personally thank the Sterbcow Law Group for representing NAMB and getting a stay against the Federal Reserve Board on LO Comp.
Your firm and the others did the impossible you gave our entire industry hope. Our industry owes you a huge bear hug.
Posted by: Russell Oliver | April 3, 2011 10:01 PM