The CFPB recently proposed rules to combine Dodd-Frank mortgage loan originator compensation provisions with the existing Regulation Z mortgage loan originator compensation rule, and to add qualification requirements for employee mortgage loan originators who work for banks. Comments on the proposals are due by October 16, 2012, with final rules expected by January 2013.  

While it appears that the CFPB is proposing to loosen certain restrictions under the current loan originator compensation rule based on industry comments, the proposed changes are likely more limited than hoped for by the industry.

topics

  • The requirement that if a creditor will pay loan originator compensation, it must offer the consumer a loan with no discount points, origination points, and fees in order to offer the consumer a loan with points and fees 
  • The requirement that if a creditor will pay loan originator compensation, any discount points or originator points or fees imposed must provide for a bona fide reduction in the interest rate compared to a loan without points and fees 
  • The ability to pay compensation based on profits in the form of contributions to qualified and non-qualified benefit or profit-sharing plans 
  • The proposal to define the concept of a "proxy" in connection with the prohibition against basing loan originator compensation on a proxy for a loan term 
  • The proposal to allow a loan originator to pay borrower costs under certain conditions 
  • The result of the CFPB's analysis of point banks and whether any type of point bank arrangement should be permitted 
  • The qualification requirements for employee loan originators who work for banks  

program

12:00 PM - 1:00 PM ET | Webinar

moderator

Alan S. Kaplinsky, Practice Leader, Consumer Financial Services Group 

panelists

Richard J. Andreano, Jr., Practice Leader, Mortgage Banking Group
John D. Socknat, Practice Leader, Mortgage Banking Group

There is no cost to attend. This program is not eligible for continuing education credits.

Please register at least two days before the webinar. Login details will be sent to all registrants. For more information, contact Lisa Prickril at prickrill@ballardspahr.com.