The “zero-zero” requirement in the loan originator compensation proposed rule pending at the Consumer Financial Protection Bureau could inadvertently steer borrowers into more expensive mortgage loans, according to a top industry official. “There is absolutely no doubt that forcing a zero-zero option is going to result in higher-priced loans,” said David Stevens, president and CEO of the Mortgage Bankers Association, during an Inside Mortgage Finance webinar this week. “Premium [loans] don’t get the same kind of multiple as a current coupon. So as the yield curve shifts and we see rates move, we’re going to see action that is going to make these numbers move around a lot.” To give a more extreme example, “if we have an interest-rate rally, you can drop...