Solving the LO Puzzle: The Do’s and Don’ts of Compensation

Recorded February 26, 2015

Setting compensation for mortgage loan officers has never been easy. But this year the twin challenges of increased competition and a tough regulatory environment have created a business puzzle that is extremely tough to solve. In particular, the intricacies of the Consumer Financial Protection Bureau’s loan originator compensation rules – now a year old – raise more questions than answers about how to attract top-producing LOs without violating the law.

While some of the restrictions on LO compensation are demarcated by bright lines, others are less cut and dry. As a result, recruitment and incentive plans may garner only thumbs down at one lender while across town what seems to be the same approach gets put in place by a competitor. At the same time, the CFPB has signaled it will be tough on LO comp issues, bringing enforcement actions based on the Federal Reserve’s older and arguably much simpler rule. All this makes finding a winning formula a hard task, particularly in a market characterized by fewer mortgage originations and increased competition.

Learn more about what triggers compensation rule violations—and what types of incentives pass the current regulatory test—from the Inside Mortgage Finance webinar “Solving the LO Puzzle: The Do’s and Don’ts of Compensation.”

The panel of experts includes:

  • Richard Andreano, Mortgage Banking  Group Practice Leader, Ballard Spahr
  • Amy Durant, Member, Bodman
  • Kristie Kully, Partner, K&L Gates

Among the topics covered during the 100-minute webinar:

  • Reducing compensation because of errors or unforeseen costs
  • Varying compensation by product type
  • Referrals
  • Bonuses
  • Splitting commissions
  • Using compensation to control origination quality
  • Pick-a-pay compensation plans
  • Changing compensation plans

Please note:

The webinar manual provides a program outline, speaker bios and presentations, and pertinent articles on the subject from Inside Mortgage Finance and our other newsletters.

The recording contains both an integrated audio/video copy of the conference as well as an audio-only version.


Recording and Manual - $380.00

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