Update on legislation that could affect YSP

Arizona Association of Mortgage Brokers 

There have been questions about legislation that will impact YSP for mortgage originators and what Arizona originators can do about it.

Here's an update from AAMB's Government Affairs Chair Jody Davis: 

"HUD's new RESPA rule and the Federal Reserve's new rule (Regulation Z; Docket No. R–1366) both could eliminate YSP.  Right now, both rules are in an 'open for comment' period. 

"There will be CALL TO ACTION from NAMB in the next few weeks.  Right now, NAMB is meeting with all the organizations involved to get the facts, determine their position and create a game plan.  Watch for more information to come.

"The Federal Reserve rule appears that it would eliminate the ability for a loan originator to be paid based upon loan amount or interest rate.  This applies to both front side fees and back side fees.  This essentially eliminates backside pricing all together and will force originators to charge a flat fee on the front end.  The comment period for this rule ends 12/24/2009..

"Some people have asked what happened to 3915.  It never went into law.  It passed the house but didn't get through the senate."

Once a CALL TO ACTION has been created, more information will be posted at this blog about what can be done to help protect the mortgage originator industry. 

 

    

Comments

[ML]

I have been told by 4 brokers/bankers in the past 2 months that starting on 1/1/10 arizona mortgage brokers will not be allowed to receive YSP from the lenders. Also that we will only be allowed to receive a 1% origination fee and that is it. They are telling me to close my business and not do the classes or renew my license because there will be no business allowed to mortgage brokers next year. Their solution is to close my small business and open a branch with a banker. Is this information true? Will there be no mortgage brokering allowed? Will I have to work for a banker to continue originating loans?

[Francine L. Freitag]

What country are we living in anyway? Since when can politicians decide how much money - or how little money - a person can make? Perhaps Chris Dodd and his cohorts should think about getting a flat fee for each insane piece of legislation they vote on. Or maybe the supermarkets should be told how much they can charge and how big or small their profit can be at the end of the day.
What the hell is going on in America? The entire appraisal industry has been destroyed. Next, the mortgage broker industry, and now the mortgage bankers too? Why in the world would ANY loan officer pay the money, take the classes, endure the stress of licensing - to make 1% on a loan? Maybe? Or better yet - a flat fee? And who decides what that flat fee will be? Perhaps we should just do the damn loans for free - and then get on welfare and food stamps? Or perhaps we could have Chris Dodd share some of his six-figure income with us? Why not? He's one of the Friends of Angelo, remember? He's got plenty of bucks! Yes, I think the guys like Dodd, Frank and the rest of them should subsidize all the loan officers and appraisers out here who are losing their houses to foreclosure because they no longer have an income! I think we should all unite into some kind of union - and go on strike!
This whole thing is starting to look like a master-plan to create a banking cartel - too big to fail, indeed! And it stinks of corruption. Politicians should be paid on their merits - and we should be the ones deciding how much they can get paid. Let's level the playing field, folks!