Loan Officer Compensation Rules Finalized

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Posted To: MND NewsWire

The fourth and last of the final regulations coming from the Consumer Financial Protection Bureau under the Dodd-Frank Wall Street Reform and Financial Protection Act was released Friday afternoon. This rule addresses the causes of what CFPB Director Richard Cordray said was one of the reasons for the collapse of the mortgage industry, the steering of consumers to high-priced loans. It was common for at least a portion of the compensation paid to loan officers and mortgage originators to be tied to their success in writing specific types of loans. These loans were usually those that were most profitable for the lenders and thus more expensive for the borrowers. Thus the loan officers were being compensated for steering consumers toward the loans that were probably the most costly and possibly...(read more)

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Source: http://www.mortgagenewsdaily.com/01182013_financial_reform.asp

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