The National Association of Mortgage Brokers Advocates for the Consumer Financial Protection Bureau to Change Loan Originator Compensation Regulations

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Solutions to help resolve problems such as fewer low-loan amount mortgages

The National Association of Mortgage Brokers (NAMB), on behalf of loan originators across the United States, requests the Consumer Financial Protection Bureau make immediate changes to loan originator compensation regulations. In a recent letter sent to the Kathy Kraninger, Director for the Consumer Financial Protection Bureau, NAMB President Richard Bettencourt addressed two specific initiatives recently put forth by a group of lender-employers suggesting the following:

  • Permit voluntary reductions by loan officers to their compensation in response to competition
  • Allow reductions to compensation when the originator makes an error

NAMB finds the suggestion to reduce the income of employees who must earn a fixed commission rate set by the government completely unacceptable, particularly when the suggestion is coming from a group of employers that do not have fixed compensation and are free to raise fees and rates at their discretion

NAMB suggests one sound solution would be to permit the consumer or creditor to pay, in addition to the loan originator’s fixed lender-contracted commission, a flat payment. NAMB also believe the CFPB should reexamine the rationale for the 3% cap on points and fees for Qualified Mortgages and either increase that amount, remove items that are double counted, or explore other ways to combat steering. NAMB believes such a solution would help resolve the problem of fewer low-loan amount mortgages.

To read the full letter sent to the Consumer Financial Protection Bureau, please click here.


The National Association of Mortgage Brokers is the voice of the mortgage industry representing the interests of mortgage professionals and homebuyers since 1973. NAMB members include small business owners, loan originators, account executives, and other industry professionals. NAMB provides mortgage professionals with education opportunities and offers rigorous certification programs to recognize members with the highest levels of professional knowledge and education.

As the leading national trade association for this industry, NAMB is affiliated with State Associations throughout the country and represents the interests of more than 910,000* licensed and registered Mortgage Loan Originators and 39,000* licensed mortgage broker and mortgage lender businesses. NAMB’s active lobbying and advocacy efforts frequently focus on national and state issues. The Association hosts several meetings throughout the year.

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Joshua Steinfeld
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