MetaSource Mortgage Blog

Federal Reserve Issues LO Compensation Guidance

Friday, January 28, 2011

On Wednesday, January 26, the Federal Reserve issued written guidance to help comply with the loan officer compensation rule that becomes effective April 1. The guidance includes:

  • Examples of how a creditor is allowed to pay a loan originator or mortgage broker
  • Clarification of the use of YSP to pay borrower closing costs
  • Information on the prohibition of "steering" and "safe harbor"

* Read the "Compliance Guide to Small Entities" regarding Regulation Z and loan originator compensation rules.

http://www.federalreserve.gov/bankinforeg/regzcg.htm

Join our next free webinar "Essentials of a Compliant QC Plan" on February 17 at 12pm MST.

Contact Mortgage Compliance Advisors to learn more about the loan officer compensation rule

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