In our latest video, Tom Black explains the intricacies of Loan Originator Compensation, defining:
- what is and is not a covered loan
- who qualifies as a Loan Originator, and
- permissible compensation
In addition, Tom provides an overview of the three rules association with Loan Originator Compensation, including an overview of:
Rule #1 — prohibits payment to Loan Originator based on the loan’s interest rate or other loan terms, or proxy for same — with an explanation of what is and is not permissible.
Rule #2 — prohibits a Loan Originator from receiving payments directly from a consumer while also receiving compensation from another person.
Rule #3 — prohibits Loan Originators from steering a consumer to a creditor offering less favorable terms in order to increase the Loan Originator’s compensation.
By the way, be sure and check out our Resources page on the Black, Mann & Graham website for tools to stay current on rules and regulations that govern our business. If you like, you can also join our mailing list to receive our Clients and Friends memos sent directly to your inbox, for timely overviews, thoughts, and interpretations from us on relevant industry topics. Here’s are links to our most recent: