Loan Originator Compensation

 The 2010 Dodd-Frank Wall Street Reform Act prohibited mortgage originators from (1) being paid by two separate parties to the mortgage transaction (“dual compensation”), and (2) from charging consumers of upfront discount points, origination charges, and fees when they pay their loan officers on a commission basis. The Federal Reserve Board issued a final rule implementing the “dual compensation” prohibition in April 2011 and the Consumer Financial Protection Agency (CFPB) is currently drafting a final rule governing the circumstances under which mortgage originators can charge upfront points and fees.

• The Impact of the CFPB's Final LO Compensation Rule on ABAs (January 2013)
• RESPRO® Tells CFPB Not to Discriminate Against ABAs in LO Compensation Rule (October 2012)
• CFPB Staff Clarifies Position on Affiliated Real Estate Brokerage Fees in Meeting with RESPRO® (June 2012)
• CFPB Bulletin on how federal Loan Officer Compensation Rules apply to qualified profit sharing, 401(k), and employee stock ownership plans (“Qualified Plans”)(April 2012)
• CFPB Issues First Bulletin Regarding TILA’s LO Compensation Rule, by K&L Gates (April 2012)
• Loan Originator Compensation, “Ability to Repay” and More -- What Dodd-Frank and the Fed Have Done (Loretta Salzano, Esq., Franzen & Salzano, LLP & Jay Varon, Esq., Foley & Lardner LLP; March 2011)