North Dakota Bankers Association - link home

About Us Government Relations and Legal Education Business Partners Communications

NDBA Home















Communications

CFPB Issues Loan-Originator Compensation Rule

Posted on 1/18/2013

The CFPB has issued its final loan-originator compensation rule, which prohibits compensation that varies with loan terms. The final rule also bans originators from being paid more if consumers agree to buy additional products from the lenders' affiliates.

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 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.

The final rule will be effective January 2014.

To read more visit: http://www.consumerfinance.gov/pressreleases/consumer-financial-protection-bureau-rules-to-prevent-loan-originators-from-steering-consumers-into-risky-mortgages/



Members Only
Calendar of Events

ND BANKS Benefit Trust

Office Depot Banker Signup

2018 NDBA High Impact Presentations

2018 Bank Management Conference