Mortgage brokers hailed the Federal Reserve Board’s final rule on loan originator compensation.
The final rule issued today by the Fed levels the playing field for all originators, according to William Howe.
Howe is the president of the National Association of Mortgage Brokers.
“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,” Howe said in a statement. “NAMB has long advocated for all loan originators to be treated the same, and the final rule does just that.”
The Fairfax, Va.-based trade group called the rule a benefit to consumers because it prevents unfair, abusive and deceptive lending practices. It also stops originators from steering borrowers into less favorable terms so that they can increase their compensation.
NAMB said the rule additionally establishes safe harbor requirements to ensure that the borrower’s best interest comes first.
Howe called the rule “a great consumer victory.”
“NAMB believes the final rule will lead to better financial understanding for consumers,” he added.
