LO Compensation: The New Rules MP3 and Manual
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.
Richard J. Andreano Mortgage Banking Group Practice Leader
Donald C. Lampe
Amy Thoreson Long
Wells Fargo Law Department
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?