Brokers Challenge Fed's Commission Pay Rule Change

Law360, New York (March 9, 2011, 11:39 PM EST) -- Mortgage brokers sued the Federal Reserve and its Chairman Ben Bernanke on Tuesday over a rule barring brokerages from paying officers on commission, saying the measure could threaten the entire industry if not halted.

The National Association of Mortgage Brokers filed the complaint in the U.S. District Court for the District of Columbia, simultaneously seeking a temporary restraining order and preliminary injunction ahead of the rule's impending April 1 effective date.

NAMB, a nonprofit trade group representing 70,000 U.S. mortgage brokers, says brokerages would be forced...
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