NAIHP Files Law Suite Against Federal Compensation Rules, BOA Blocks Mortgage News Show From Their Loan Officers

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This is directly from the NAIHP Web site. I want to personally thank Mark Savitt from the National Association Of Indendant Housing Professionals for continuing to fight for what is right not only to us in the industry but also for the consumers. As Stated, the FRB Rule on Originator Compensation will hurt small business, hurt the consumers and will put many good originators out of business leaving the consumers and other housing professionals at the mercy of Big Banks by eliminating a huge amount of their competition. The NAIP continues to fight these Ill concieved rules, and I am deeply gratefull for their continued support. Please support the NAIP and Mark Savitt as they are supporting all of us, from the Originator, Realtor and Consumer alike.

NAIHP thanks all those who have contributed to the legal fund against the Fed.

For the past few months, we have been carefully preparing our case to stop the Fed's illegal rule on loan originator compensation. We have retained the Washington, DC law firm of Howrey. This firm has a long and successful track record of taking on the Federal Government.

A case as important as this one requires substantial research and planning, in order to have a successful outcome, which is what our team has been doing for the past few months. As frustrating and stressful as this issue has been, it's not something you can rush and put together in a few days. We have one bite at the apple and need to make sure we do it right the first time.

NAIHP anticipates our suit will be filed within the next ten days. As mentioned in previous announcements, our first order of business will be a temporary restraining order (TRO), to stop the April 1st implementation.

NAIHP asks that you continue to contribute to the legal fund. Remember, we guarantee every dime of your contributions will go to the legal action, and any unused portion of the funds will be refunded on a prorated basis.


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    SBA Requests Fed to Delay Rule on Originator Compensation

Dear Chairman Bernanke and Director Braunstein:

I am writing in reference to the Board of Governors for the Federal Reserve (Board) final rule on Regulation Z; Docket No. R-1366, Truth in Lending, which implements regulations for loan originator compensation and steering.   Advocacy is concerned that the Board may not have published a compliance guide as required by the Small Business Regulatory Enforcement Fairness Act (SBREFA).     Advocacy recommends that the Board publish a compliance guide in the immediate future and extend the time for small entities to comply to reflect the delay in the availability of the guide. 

Read More


    The Fed Rule on            

Originator Compensation



NAIHP is aggressively fighting this anti-competitive, anti-small business rule. Our legal team is finalizing our position and preparing to file legal action against the Fed, should the FRB not withdraw the rule.


NAIHP has always believed this rule was dangerous and needed to be stopped. Our position has never changed, since the day it was originally proposed in August of 2009. For over a year, we tried working with the Fed to make changes, but that effort failed.


In recent weeks, NAIHP has held several high level meetings with various agencies, including the CFPB, Elizabeth Warren, the Financial Crisis Inquiry Commission and numerous legislators. Between now and Christmas, we will be meeting with additional agencies, along with two incoming Congressional Committee Chairs.


Our position is clear. The FRB lacks the authority to restrict compensation. Moreover, the testing for this rule was seriously flawed and limited. The rule picks winners and losers, in that it eliminates competition, which increases costs for consumers and creates more business failures for small business.


In addition, with the passage of the Dodd-Frank Wall Street Reform Act, the FRB should have withdrawn their proposed rule, instead of finalizing it. This action by the Fed, showed a complete disregard for Congress and gives support to those who believe the FRB is a secret agency, who acts without oversight.


NAIHP will be updating this page weekly, or as events happen.




Comment Period


Federal Reserve Board's Interim Rule on

Appraiser Independence


This rule concerns "customary and reasonable fees"for appraisers, as well as other HVCC type issues that concern ALL housing professionals.


We can't stress enough the importance of commenting. TAVMA and AMC's, who want to delay implementation of customary and reasonable fees, will be commenting. Let your voice be heard!


Deadline to comment:  December 27, 2010


We urge all housing professionals to comment today and NOT wait until the end of the comment period. Furthermore, forward this announcement to your database of professionals and post on social media sites.


How to Comment: 

Be sure to include the following:  Docket No. R-1394and RIN No. AD-7100-56


Instructions for submitting comments via the FRB's website.


Instruction for submitting comments by Fax:

Include docket number in subject line.                 

Fax 202-452-3819 or 202-452-3102


Direct Mail:

Mail to Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System,              20th St and Constitution Ave., N.W., Washington, DC 20551



It's NOT over yet!


Financial Reform Legislation in doubt.


Financial reform legislation may be in jeopardy. Once the Senate begins debate on the compromise bill, it needs 60 votes to end that debate. The Senate began the process with 59 votes. Due to the passing of WV Senator Robert Byrd and the announced "NO" vote of Democrat Russ Feingold, the majority is down to 57 votes.


Republicans who previously voted in favor of the bill, prior to conference, are likely no votes. However, deals will be offered on both sides to gain support. Therefore, we ask that you call your Senators and tell them to vote NO! Explain how this bill will harm consumers and your business.


Link to Senate contact information:





NAIHP calls on FHFA to withdraw HVCC guidelines, due to findings of the MARI Report on fraud.


On May 5, 2010, NAIHP President Marc Savitt, wrote to FHFA Director Edward DeMarco, asking that the Home Valuation Code of Conduct (HVCC), be withdrawn. "I'm sure by now you've seen the MARI report on mortgage fraud, specifically the section on appraisals. If not, a copy is attached. As you will note, appraisal fraud has increased sharply in 2009. Additional, the quality of appraisals have dropped significantly."


"In every one of our 7 meetings with your agency, we predicted this exact same scenario. HVCC does nothing to reduce fraud or conflicts of interest. It does however, cause substantial harm to consumers and small business. It is for these reasons, we ask the FHFA to immediately withdraw the HVCC guidelines."


HVCC Update:  April 14, 2010

NAIHP's Rally and Lobby Day was successful. While members visited the offices of their representatives, leadership met with Rep. Travis Childers, who pledged to work with us to nullify HVCC. Rep. Childers revealed his plans for including the Childers/Miller/Bachman/Manzuello amendment in the appropriate bill. We also met with the offices of three U.S. Senators. Additional meetings are scheduled within the coming days.

Federal Reserve Board Meeting:  April 13, 2010

NAIHP met with the Federal Reserve Board to discuss the FRB's proposed rule on loan originator compensation. The scheduled 30 minute meeting lasted almost 90 minutes, but failed to produce any positive results. NAIHP is currently working with legal advisers to discuss "options." Watch for additional updates.

March 5, 2010

NAIHP President Marc Savitt and VP Ian Coates, met with the office of Senator Tim Johnson, (D-SD). The meeting centered around NAIHP's HVCC Proposal and their overall "Main Street Solution." The Proposal, developed in cooperation with Brokers, Realtors and Appraisers, enhances existing language in HR 4173, which passed the House of Representatives in December 2009. The Senate is currently working on their version of this legislation.

"Our HVCC Proposal gives Senators an additional comfort level with respect to legislation nullifying HVCC, according to Savitt."

On March 4, 2010, Savitt and Coates met with FHFA General Counsel Alfred Pollard (regulator for the GSE's) and discussed the NAIHP Proposal. (More about this meeting later).

Since May of 2008, one full year before the implementation of HVCC, Savitt has met with the NY Attorney General's Office 5 times, the FHFA 7 times, Fannie and Freddie twice, along with numerous Members of Congress. He has also testified twice before Congress on this issue. Marc has appeared on numerous cable news shows and has been interviewed by the press countless times in his campaign to end HVCC and the harm it creates to consumers and small business professionals.

Be sure to join NAIHP and help build one of the largest grass roots organizations.

Click the "Join Now" button to the left and become a member.


Posted by


                                        Steve Fingerman, E Loans Home Mortgage

Steve Fingerman


NMLS #276682

E Loans Mortgage Inc

4117 Mariner Blvd

Spring Hill FL, 34609

Office 352-688-7949 Cell 727-946-0904

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