“Loan Officer Compensation Rule too be Delayed”
The CFPB are quickly figuring out, they no one in the mortgage industry, the real estate industry or anyone that believes in a free enterprise system is just going to bend over.
I wonder if some of this has to do with an upcoming election? I wonder what percentage of the business community is going to vote for another four years for failure and moving our country toward socialism?
The sooner that this country repeals Dodd-Frank, the sooner more jobs will get created. The sooner these restrictive rules and regulations are eliminated the sooner that more jobs will get created.
Will the CFPB Delay the LO Comp Rule Too?
By: Paul Muolo
The Consumer Financial Protection Bureau this week decided to delay the issuance of a final "qualified mortgage" rule until after the Nov. 6 elections. The scoop was first reported by National Mortgage News on its website Thursday. This new development has prompted many loan officers and nonbank lenders to speculate that maybe (just maybe) the CFPB will delay its compensation proposals until well into next year. Of course, final proposed regulations have not been written yet. And what’s been unveiled to this industry thus far has caused much anger and resentment toward the young agency. There is much confusion over the idea of ‘flat fee’ compensation, but a close reading of the rule suggests that LOs can continue to earn percentage-based commissions depending on how a loan is funded. But there is one piece of good news in the CFPB proposal: it opens the door to allowing mortgage brokers to eat unanticipated increases in third-party costs, passing that savings onto applicants and using it as a competitive advantage against bank LOs. Then again, the CFPB also has concerns about allowing such practices.
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