LO Compensation: The New Rules

Loan Officer Compensation: The New Rules webinar

An Inside Mortgage Finance Webinar

Recorded February 28, 2013

The Consumer Financial Protection Bureau has just released its final rule on loan originator compensation. The rules build on regulations put into effect by the Federal Reserve nearly two years ago, but add some new gray areas. Loan originators cannot be compensated by more than one party to a transaction but brokers can pay commissions. Pricing concessions are forbidden, but originators can reduce their compensation to offset some unexpected increases in settlement costs. New qualification standards apply regardless of who employs the originator but licensing and registration requirements remain unchanged. And anti-steering prohibitions are nowhere to be found.

Learn where the dividing lines are and how your procedures need to change to stay on the correct side at the Inside Mortgage Finance webinar “LO Compensation: The New Rules.” You’ll hear from a panel of legal experts who will explain the rule and discuss how to revise your current systems on CD or MP3 recording. 

Panel includes:

Richard Andreano, Ballard Spahr Don Lampe, Dykema Amy Thoreson Long, Wells Fargo Law Department Guy Cecala, Inside Mortgage Finance

Richard J. Andreano Mortgage Banking Group Practice Leader

Ballard Spahr


Donald C. Lampe
Leader, Financial Services, Regulatory & Compliance Practice



Amy Thoreson Long

Senior Counsel
Consumer Lending Division

Wells Fargo Law Department

Guy Cecala

CEO and Publisher Inside Mortgage Finance



During the 90-minute webinar recording, you’ll learn

  • Are there different standards for loan originators employed by depository institutions?
  • What qualifies as a “term” of the transaction and what qualifies as a proxy for a term?
  • What leeway do loan originators have to make pricing concessions?
  • When are commissions, bonuses and profit sharing allowed?
  • What notices are required if a borrower is presented with a loan option that includes upfront points or origination fees?
  • What happened to the Dodd-Frank mandate that the LO rule prohibit steering?
  • What restrictions are placed on binding arbitration clauses?
  • When do the rules’ various provisions take effect?
  • Who has to keep records and for how long?
  • Who is considered a loan originator, and who is not?
  • Can fees vary with the loan amount?
  • How does the new rule differ from the Federal Reserve rule that is currently in effect?
  • What compensation models are allowed?
Conference CD with Manual Only - $359.00
MP3 and Manual - $360.00

Please contact Customer Service if you need assistance: 1-800-570-5744


After the November elections, how long will it take for a new Congress and White House to pass GSE reform legislation?

I’m confident a bill will be passed the first year.


2 to 3 years. GSE reform is complicated.


Sadly it won’t happen in a Clinton or Trump first term.


Not in my lifetime.


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