The Department of Housing and Urban Development is expected to publish a Respa interpretive rule that will increase disclosures required of mortgage broker-originated loans, deny mortgage brokers a secondary market exemption for table funding and ban volume-based compensation, according to a copy of the rule obtained by Mortgage Marketplace.
The rule will become effective upon publication in the Federal Register, likely in November, said a mortgage banking lobbyist. The rule has been held up in internal clearance, reportedly over the volume-based compensation provision. One mortgage banking lobbyist predicted the clearance process will be resolved quickly. HUD interprets the three issues thus: