A judge has ruled against mortgage brokers, who sued to stop implementation of the loan officer compensation rule.
Earlier this month, the National Association of Mortgage Brokers filed a lawsuit in U.S. District Court for the District of Columbia against the Federal Reserve Board.
The action followed a complaint filed by the National Association of Independent Housing Professionals just a few days earlier.
Both trade groups sought to delay the Federal Reserve’s Loan Officer Compensation rule that goes into effect tomorrow. The compensation rule is being implemented under the Fed’s Regulation Z rule. Reg Z implements the Truth in Lending Act.
On Wednesday, NAMB said that the judge ruled against the trade group.
“The judge did deny our motion for a preliminary injunction and temporary restraining order,” Mike Anderson, NAMB government affairs chairman, said in a video message.
Anderson said that the trade group is immediately filing an appeal for the stay from the appellate court. He also said lobbying efforts will continue.
While he did acknowledge the mortgage brokers are vulnerable, he added that “we are not going to give up the fight.”
