WASHINGTON (4/7/11)--The U.S. Court of Appeals for the District of Columbia Tuesday lifted a stay on the implementation of the Federal Reserve's Regulation Z Loan Originator Compensation final rule, a stay that, effectively, lasted two business days. The brief court order dated April 5, in part, states: “Upon consideration of the emergency motion for expedited relief and the emergency motion to stay implementation of final rule pending appeal, the response thereto, and the reply, it is ORDERED that the administrative stay entered on March 31, 2011, be dissolved.” This lawsuit connected to the Fed rules has nothing to do with the SAFE registration process for mortgage loan originators, the Credit Union National Association notes. The new order is the most recent result of emergency relief requests filed in the appellate court in late March by the National Association of Mortgage Brokers (NAMB) and National Association of Independent Housing Professionals (NAIHP). Earlier, these parties filed a pair of lawsuits against the Fed in the U.S. Federal District Court for the District of Columbia. The suits, which sought a temporary restraining order and a preliminary injunction to prevent enforcement of the Regulation Z final rule, were rejected by the District Court in late March. The final rule central to the dispute and set to come into effect on April 1 applies to closed-end consumer credit transactions that are secured by a dwelling. The Fed's final rule prohibits payments to loan originators, including mortgage brokers and loan officers, based upon the terms or conditions of the loan such as the interest rate. The rule would also prevent loan originators from being paid more compensation if the borrower accepts an interest rate higher than the rate required by the lender. This is commonly referred to as a "yield-spread premium." The practice of "steering" consumers toward loans that are not in their best interest to increase a loan originator's compensation would also be banned under the rule. Loan originators would still be permitted to receive compensation that is based on a fixed percentage of the loan amount, however.