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

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Join our next free webinar”Essentials of a Compliant QC Plan” on February 17 at 12:00 pm MST.

Tags: Dodd-Frank, Federal Reserve Compensation, LO compensation, loan officer compensation, reg z, regulation z