Tabs

Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
 
Qualified Mortgage - Qualified Residential Mortgage
Swaps
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Capital
Deposit Insurance
Interchange
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Preemption
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Appraisals
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Tuesday, January 22, 2013

CFPB Issues Final Loan Originator Compensation Rule

The CFPB issued its final loan originator compensation rule, the last in a set of mortgage regulations the CFPB released this month.

As ABA strongly requested, the CFPB dropped from the final rule its proposed “zero-zero alternative” that would have required lenders to offer a loan option with no discount points or origination fees any time they offered a mortgage with such payment features.

ABA advised the CFPB that for various structural and market reasons the proposed zero-zero alternative would not be a viable option for most banks. The association added that the alternative also raised various uncertainties with respect to compliance with timing and disclosure requirements.

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 also 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 goes into effect on Jan. 10, 2014.

Read the CFPB press release.
Read the CFPB summary of the final rule.
Read the final rule.

6 comments:

albina N muro said...
This comment has been removed by a blog administrator.
jowdjbrown said...
This comment has been removed by the author.
jowdjbrown said...

The association added that the alternative also raised various uncertainties with respect to compliance with timing and disclosure requirements. pengar snabbt

Richard C. Lambert said...

There are administrators trying to make a difference. There are administrators who would be over their heads in attempting to organize a softball game at a family picnic. freecreditreport

Robert F. Crocker said...

If you set the annuity switch to 0 or you omit the argument, Excel assumes payments occur at the end of the period following the ordinary annuity convention. buy ukash online with paypal

Robert F. Crocker said...

Great post full of useful tips! My site is fairly new and I am also having a hard time getting my readers to leave comments. Analytics shows they are coming to the site but I have a feeling “nobody wants to be first” no guarantor loan

Post a Comment

Please read our comment policy before making a comment.