CFPB to Exclude GSEs from LO Comp?

Writing in NationalMortgageNews, Paul Muolo says some industry officials are suggesting the Consumer Financial Protection Bureau (CFPB) exclude Fannie Mae, Freddie, Mac and Federal Housing Authority (FHA) loans from its loan origination compensation proposals. has learned the National Association of Independent Housing Professionals says: “As an alternative to the proposed changes in mortgage loan origination standards, the CFPB should exercise its exemption authority under Dodd-Frank, by specifically exempting all prime/traditional and government loans from the MLO Compensation regulations, while retaining the proposed restrictions for high cost and subprime mortgages. It would eliminate any incentive for placing a prime qualified borrower in a high cost mortgage for the purpose of greater financial gain and would be a far less burdensome solution. Moreover, it would establish a firewall to protect consumers from steering, while restoring consumer choice to the prime market. We urge the CFPB to adopt this alternative.”

(Image credit: ForeclosureListings)

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