The Real Deal New York

From the May issue: Some New York City mortgage brokers are panicked about new federal rules governing their pay, saying the changes could spell doom for the already ailing mortgage industry. Last month, the Federal Reserve Board issued new regulations dictating compensation for mortgage brokers — the middlemen between the consumer and the loan originator or bank — and loan officers, who typically work directly for the originator. The new rules are the latest effort from the Federal Reserve Board to protect consumers, but mortgage brokers in New York City and elsewhere say they are already seeing unintended consequences, in an industry hurting from the subprime mortgage crisis. [more]