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Complying With the CFPB Regulations on Loan Originator Compensation

The Consumer Financial Protection Bureau (CFPB) has stated that one of its primary examination and enforcement targets this year will be compliance with the restrictions on loan originator compensation. However, there are still many lingering questions about what is allowed, what is prohibited, and what the downside risks are. Even some of the principles that seemed clear at first have started to seem cloudy again.

In this webinar, Kris Kully, a partner with Mayer Brown in Washington DC, will discuss questions and provide you some principles you need to know in order to comply with complex regulations.

In this program, Ms. Kully will discuss the following questions, among others:

  • We’re bringing in a new branch, and they want to be compensated as a team. Can I make that work?
  • Can I allow my loan originators to pick their own compensation plans (i.e., a so-called “pick-a-pay” plan)?
  • Can I pay my loans originators differently for purchase money loans versus refinancing’s? Reverse mortgage loans versus forward loans? Jumbo loans versus conforming loans?
  • How can I hold loan originators responsible for controlling costs like tolerance violations or buyback costs?
  • What will the CFPB be looking for, and how I can get prepared?
  • What other compensation issues should I watch out for?