FED PUBLISHES GUIDANCE ON LOAN OFFICER COMPENSATION

Heeding pleas from industry groups across the country, the Federal Reserve has issued additional guidance to help smaller mortgage lenders and loan brokers comply with new compensation rules that take effect April 1, 2011. Pay structures in which brokers and loan officers are compensated based on the interest rate have been blamed for pushing consumers into unsustainable mortgages and contributing to rising delinquencies. The new rule prohibits this practice to ensure consumers are not steered into loans they can't afford.


http://www.dsnews.com/articles/federal-reserves-loan-officer-compensation-guidance-2011-01-28