Loan originator compensation requirements released this week by the Consumer Financial Protection Bureau aim to prohibit steering to subprime mortgages. The CFPB noted that during the subprime boom, some borrowers who would have qualified for prime loans were steered into subprime loans, with the steering largely tied to LO compensation. “Before the financial crisis, many mortgage borrowers were steered towards risky and high-cost loans because it meant more money for the loan originator,” said Richard Cordray ...