NAMB to join other trade associations in Washington, D.C. for roundtable meeting
WASHINGTON, D.C. – November 14, 2013 – (RealEstateRama) — NAMB—The Association of Mortgage Professionals has announced that it has been invited by the Consumer Financial Protection Bureau (CFPB) on Tuesday, Nov. 5 to take part in a sit-down conference to discuss the role the mortgage broker plays in the recovery of the nation’s economic recovery. Representing NAMB at the meeting will be association President Don Frommeyer, CRMS, senior vice president of Amtrust Mortgage Funding in Carmel, Ind. Frommeyer will be joined by the leadership of other housing finance-related trade associations, including the Mortgage Bankers Association (MBA), National Association of Realtors (NAR), Real Estate Services Providers Council Inc. (RESPRO), and Impact Mortgage Management Advocacy & Advisory Group (IMMAAG), among others.
“I think what the CFPB is trying to do, and this is operating without any sort of itinerary from the CFPB as to what the meeting is about, is to figure out exactly the best way to move forward,” Frommeyer said. “They’re trying to get a better handle on the situation and educate themselves as much as possible. The CFPB really wants to know how the entire mortgage process works and that is why they are seeking our opinions.”
NAMB recently submitted a letter to the CFPB to detail the mandatory credits a broker is required to provide consumers when rate sheet pricing exceeds the broker’s contractually obligated Lender Paid Compensation agreement. NAMB contends that the mortgage broker community provides mortgage credits back to the consumer that range in the billions annually, thus stimulating the nation’s economy. In order to demonstrate this, NAMB polled four broker entities and gathered the data to present to the CFPB.
“The invitation I received, the gist of it is, really, to discuss mortgage brokers,” Frommeyer said. “At this point in time, I have to believe that part of the Nov. 5th meeting has to do with our recent letter submitted to the CFPB that basically provided information on mortgage rebates and how much money brokers are kicking back to the consumer.”
The CFPB’s Ability-to-Repay and Qualified Mortgage Rule is set to take effect on Jan. 10, 2014. As currently written, the stringent requirements of the CFPB’s rules will force many brokers nationwide out of business. NAMB seeks to continue to play a major role in the recovery of the U.S. housing market and the recovery of the American economy nationwide.
Since 1973, NAMB—The Association of Mortgage Professionals has been the voice of the mortgage broker industry, representing the interests of mortgage professionals and homebuyers. Its mission is to promote the highest degree of professionalism and ethical standards for members through programs and services such as education, professional certification and government affairs representation. In addition, NAMB members subscribe to a specific code of ethics and best lending practices that foster integrity, professionalism and confidentiality when working with consumers. For more information, visit www.namb.org.
Eric C. Peck
NMP Media Corp.
(516) 409-5555, ext. 312