NAMB to File Suit Against the Federal Reserve It was a very difficult choice whether filing legal action was an appropriate course on the Fed's LO Compensation Rule. Many loan originators wanted us to do so immediately and there may be other suits. I can tell you NAMB's suit is not a knee-jerk reaction. It has been planned and well-thought out. Numerous legal firms have consulted with NAMB on the legal basis for such a suit. One must realize that the courts give tremendous deference to federal agencies who claim to be doing what they are legislatively empowered to do. No suit is a slam dunk.
One must consider if they have a law firm(s) with the skill, knowledge and horsepower to have a chance. NAMB was approached by a team composed of DC lawyers and powerful plaintiff's lawyers who have a track record of winning some of the largest awards in US history. They made us an offer too good to refuse so we have accepted and will begin proceedings Monday.
These folks are giving us a bargain but they are still not cheap. We need every loan originator to donate. Nothing could be worse than to win an injunction and then not have enough money to finish through appeals. If ever you gave to cause, now is the time. I know that I will lose at least 1/2 point from one of my best wholesalers because of the fee that I have chosen to remain competitive. That will equate to tens of thousands of dollars.
The suit is just one of the many attacks on the rule that NAMB is taking. We are increasing our lobbyists, marching on the hill and co-ordinating grass roots activities. Fortunately, many donations are already coming in but we need every originator to take a stand now and show the Fed we will not be driven into the ground. Our cause is just and it is right. The Fed is wrong and anti-consumer.
Blog is courtest of John Councilman of NAMB. Reposted to spread the word about what is happening in our industry.
http://www.linkedin.com/groups/NAMB-File-Suit-Against-Federal-100276.S.44318282
More information on this subject can be found at:
http://www.youtube.com/watch?v=bxzyuKufw9Q&feature=email
DJ Rondeau
Bay to Bay Lending, L.L.C.
501 South Dakota Ave, Suite 2
Tampa, FL 33606
813-489-5562- Office
813-480-6077- Mobile
813-464-2867- Fax
djrondeau@baytobaylending.com
www.tampafloridamortgagebroker.com
NMLS Originator ID: 218498
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