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
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Deposit Insurance
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
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.


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

jowdjbrown said...

Great post! I am actually getting ready to across this information, is very helpful my friend. Also great blog here with all of the valuable information you have. Keep up the good work you are doing here.

jowdjbrown said...

You completed a number of nice points there. I did a search on the issue and found nearly all people will have the same opinion with your blog.

jowdjbrown said...

Superb Information, I really appreciated with it, This is fine to read and valuable pro potential, I really bookmark it, pro broaden read. Appreciation pro sharing. I like it.

jowdjbrown said...

Wonderful blog post. This is absolute magic from you! I have never seen a more wonderful post than this one. You've really made my day today with this. I hope you keep this up! installment loans

Robert F. Crocker said...

This article gives the light in which we can observe the reality. This is very nice one and gives indepth information. Thanks for this nice article.

Financial Directory SG

Elizabeth J. Neal said...

This is really a nice and informative, containing all information and also has a great impact on the new technology. Thanks for sharing it cash loans south africa

Elizabeth J. Neal said...

very interesting keep posting. los angeles car title loans

jowdjbrown said...

Interesting topic for a blog. I have been searching the Internet for fun and came upon your website. Fabulous post. Thanks a ton for sharing your knowledge! It is great to see that some people still put in an effort into managing their websites. I'll be sure to check back again real soon.

jowdjbrown said...

Thanks For sharing this Superb article.I use this Article to show my assignment in is useful For me Great Work. hard money

Flack Jhonsan said...

Bad credit history can be unforgiving for one's financial records. There is no one better to understand this apart from students. Imagine their mental state when they do not have the money to complete their education and they do not have any source to get money as well. yayasan bank rakyat

jowdjbrown said...

I admire what you have done here. I like the part where you say you are doing this to give back but I would assume by all the comments that this is working for you as well.

Post a Comment

Please read our comment policy before making a comment.