A new service has emerged to help in aiding the transition to new loan originator compensation rules, set to go into effect April 1.
Comergence Compliance Monitoring, which provides third-party originator (TPO) solutions, has developed CompEditor, a new product to help lenders manage their loan originator compensation agreements, as will be required by the Fed’s Regulation z.
As part of the new loan officer compensation rules, a creditor is required to keep records of the compensation it provides to loan originators as well as the compensation agreement in effect on the date the interest rate was set for the transaction. Records must be kept for two years after a mortgage transaction is completed, say the new rules.
“By utilizing our comprehensive TPO management compliance system, lenders can now use the document management portion of our system to initiate, distribute, renew and retain their loan originator compensation agreements and house these agreements within the complete and comprehensive Mortgage Broker profile database we establish for each lender,” said Greg Schroeder, president of Comergence Compliance Monitoring. “Comergence Compliance Monitoring has worked diligently to establish processes that would constitute best practices for this portion of the Truth in Lending Act.”
Additionally, independent brokers can use the system to manage and maintain individual loan officer compensation agreements.
Written by Elizabeth Ecker