From the February issue: When the Federal Reserve Board invites comments on proposed changes to
one of its regulations, a few hundred responses typically trickle in.
But before its recent deadline for feedback on amendments that
would revise the disclosure rules for closed-end mortgages, or
mortgages that can’t be paid off until they mature, the agency was
deluged with nearly 4,000 comments.
Many came from loan originators, in New York and elsewhere, who
alleged that the Fed’s proposal to restrict a compensation practice
known as yield-spread premiums –YSPs for short — will put mortgage
brokers out of business and hamper lending.