The financial services reform bill does little to help consumers shop for a loan, according to the National Association of Mortgage Brokers.
NAMB chief executive Roy DeLoach said the government is trying to impose its choices on consumers. An amendment by Sen. Jeff Merkley, D-Ore., restricts the way brokers can be paid by lenders and consumers.
It is “too big brotherish,” he said. NAMB feels regulators should be given the flexibility to make changes to the compensation provisions.
The trade group also is worried about a safe harbor provision that limits points and fees to 3% of the loan amount. Congress directed regulators to make adjustments, giving lenders an incentive to make loans under $100,000, a move that helps low- and moderate- income homebuyers.
“This will help to counter any unintended consequences for consumers,” DeLoach said in an interview conducted during NAMB’s annual meeting in Phoenix.
