Subtitle A: Loan Originator Compensation Restrictions and Enforcement

Subtitle A: Loan Originator Compensation Restrictions and Enforcement

Brief Reputation For the Rule

Unlike a great many other CFPB guidelines, the initial iteration associated with the loan officer settlement guideline did not stem from the Dodd-Frank Act. In August of 2009, the Board of Governors of this Federal Reserve System (Board) issued a proposed guideline on loan originator settlement. The Dodd-Frank Act ended up being enacted on 21, 2010 and contained restrictions that closely, but not entirely, followed the Board’s proposed rule; however, less than a month after the Dodd-Frank Act was enacted, the Board finalized its rule july. The Board acknowledged that there have been differences when considering its guideline as well as the Dodd-Frank Act, however the Board determined that delaying its guideline would damage customers.

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