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NAMB to File Suit against the Federal Reserve - Post from LinkedIn - John Councilman - NAMB

By
Mortgage and Lending with Bay to Bay Lending

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

Comments (4)

John Michailidis
Real Property Management of Sarasota & Manatee - Sarasota, FL
Real Property Management of Sarasota & M

I can honestly say that I have no idea what you wrote D.J. It seemed rambling and unfocused to me . . .

Feb 20, 2011 04:35 PM
Brett Noel
Realty Pros - Paso Robles, CA
Training Agents to Reach Maximum Success

I am glad to hear that someone will be fighting for mortgage brokers. As a former mortgage broker and banker I understand how hard you work and what you have to do to get a loan to funding.

As a real estate agent I am also concerned whrn government agencies go after real estate agents and limit their commissions as well.

When does the govt stop regulating fees and earnings and what other industries do they go after next?

 

Great Post

Feb 20, 2011 04:36 PM
Samantha Davault
Alexander Chandler Realty - Fort Worth, TX
Fort Worth, TX

DJ, I am glad that NAMB decided to pursue legal action.  The destruction of the mortgage industry has gone on long enough and though the legislatures claim that it is in the best interest of the consumer, it has the reverse effect in that it eliminates healthy competition between qualified and experienced loan professionals and puts all of the origination business in the hands of hourly employees that are not as skilled and honestly don't have any reason to assure a quick and smooth transaction.

Thanks so much for sharing this information.

Feb 20, 2011 04:43 PM
Anonymous
Paul

Why not join forces with NAIHP.org? They have been preparing to file for months nad this seems kind of last minute. When is everyone going to realize the sum of the parts is our best chance? Who is your law firms and when are you going to file? YOu said today but its a federal holiday.

Feb 21, 2011 05:09 AM
#4