|A further update on the rules as reported by Mortgage Daily….(see our previous post on this topic).
Guidance Issued on LO Comp Rule
CFPB proposes rules on fees, originator qualifications and originator compensation
Aug. 17, 2012
By MortgageDaily.com staff
|New rules on loan fees and interest rates have been proposed, while another proposal seeks to eliminate some of the disparity between bank and non-bank loan originators. In addition, changes are being proposed to the existing loan originator compensation rule that should alleviate some industry concerns.
On mortgages where a mortgage broker or creditor pays a loan originator a transaction-specific commission, the Dodd-Frank Wall Street Reform and Consumer Protection Act prohibits up-front discount points, origination points or fees that are retained by the creditor, broker or affiliate. While bona fide up-front payments to independent third parties such as appraisers are still being permitted, the change would result in a restructuring of current pricing…
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