This site uses cookies to improve your browsing experience, gather site analytics and activity, track shopping cart contents, and deliver relevant marketing information.
View our privacy policy and manage your settings here. By using our site you agree to these terms.

Loan Originator Compensation

The Consumer Financial Protection Bureau on Jan. 18, 2013, issued its final loan originator compensation rule. The rule, among other things, prohibits compensation that varies with loan terms, and bans originators from being paid more if, for example, the consumer agrees to buy title insurance from the lender’s affiliate.

Under the rule, originators cannot be paid by both the consumer and the creditor, and they must meet new qualification and screening standards -- including character and financial responsibility reviews, criminal background checks and training requirements. The final rule also implements Dodd-Frank Act provisions that, for mortgage and home equity loans, generally prohibit mandatory arbitration of disputes related to mortgage loans and the practice of increasing loan amounts to cover credit insurance premiums.​ 

​​Learn more about our position by reading our policy overview.​​
 

 Recent Developments

 
 

 The Basics

 
 

 Resources

 
 

 Advocacy

 



Questions? Please contact Rod Alba for more information.