A federal appeals court has rendered its decision about whether to continue to delaying the implementation of the loan originator compensation rule while mortgage brokers battle it out with the Federal Reserve Board in federal court.
The decision came late Tuesday from the U.S. Court of Appeals for the District of Columbia Circuit.
The court was considering an emergency motion filed by the National Association of Mortgage Brokers and the National Association of Independent Housing Professionals Inc.
Both groups are likely to be sorely disappointed with today’s decision from the three circuit court judges.
“It is ordered that the administrative stay entered on March 31, 2011, be dissolved,” today’s order states.
In addition, the brokers’ motions were denied.
“Appellants have not satisfied the stringent standards required for a stay pending appeal,” the decision stated.
Brokers Respond to Fed Filing
U.S. mortgage brokers delivered their response to the Federal Reserve Board’s filing yesterday in the brokers’ lawsuit seeking to lift the stay on the loan originator compensation rule. The brokers, who are pleading to stop the rule from “decimating the mortgage brokerage industry,” might have a chance changing one aspect of the rule, according to one expert.
Fed Fires Back in LO Comp Rule Lawsuit
The Federal Reserve Board filed its response to an appeal by mortgage brokers to have the loan originator compensation rule delayed. The Fed says that the brokers have not shown that they have a reasonable chance of winning their case and is asking to have an emergency order lifted.
National Association of Mortgage Brokers, Appellant, National Association of Independent Housing Professionals Inc., Appellant, v. Board of Governors of the Federal Reserve System, et al. Appellee.
Case No. 11-5078, 11-5079 (U.S. Court of Appeals for the District of Columbia).