Loan officer compensation rules may be facing change once again, National Mortgage News reported today based on comments made by the Consumer Financial Protection Bureau’s Peter Carroll, head of the agency’s Office of Mortgage Markets.
“The Consumer Financial Protection Bureau plans on taking a close look at the Federal Reserve’s controversial loan officer compensation rule and will issue a new proposal ‘soon’ according to a top official at the young agency.
CFPB acting assistant director Peter Carroll told a Women in Housing and Finance symposium Tuesday that the agency is particularly interested in transactions where the consumer pays discount points and “how that affects creditor-paid transactions,” he said.
…”We are re-visiting some of the issues around that rulemaking as well as other items that were given to us in the Dodd-Frank Act,” Carroll said. “We are working on it now and hopefully will have a proposed rule soon,” he said.
The Fed rule, which went into effect in April 2011, led lenders to restructure their compensation plans for all originators. Several lenders attending the National Reverse Mortgage Lenders Association conference in New York City this week reported that nearly a year after the rule went into effect, they have successfully implemented their new plans without any significant problems.
The rule went into effect under the Federal Reserve Board, mandated under the Dodd-Frank Act and the CFPB later received authority for the rule.
View the original National Mortgage News Article.
Written by Elizabeth Ecker