Recent post from John H. P. Hudson, past Government Affairs Chair for NAMB

John's post on Linked in

Feds forcing LO's to be salaried???

Perhaps this was the plan all along.... I remember meeting with a CFPB official 2 years ago on LO Comp and the question was asked...."why don't you just put your loan officers on salary?".... 

This article brings up a good point...as long as MLO comp cannot be attributed to a single specific transaction, than the MLO Comp will not be included in the 3% cap on points and fees.... 

Of course, this also creates an environment which is detrimental to many small businesses because they cannot afford to put many sales employees on salary... 

This should reinforce every MLO, whether they work for a broker or banker, to get behind NAMB and MBA and ther efforts to remove lender paid compensation from the 3% cap in QM by way of HR 1077, the Consumer Mortgage Choice Act... 

(If you are not a member and again, it does not matter if you are a broker or a banker, please visit www.coamp.org and join your industry trade association.  Promote consumer choice, promote small business.)

The 3% cap will harm consumers and small businesses and the recovery at a time when housing looks like it may be one of the few ways to rebuild this country's economy...