The task of recruiting and retaining the best loan originators has become extremely challenging – and competitive – in this year’s mortgage lending environment. And the Consumer Financial Protection Bureau’s tough LO compensation rules haven’t made that task any easier. Some of the best and proven incentive plans are now prohibited under the regulations, which went into effect two years ago. But even more of a concern when coming up with attractive and legal compensation plans are the gray areas of what you can and can’t do.
Some lenders’ interpretations of those gray areas are leading them to create compensation plans that their competitors think are forbidden. While these questionable plans may succeed in luring away LO talent, they also may be creating major regulatory risk. The CFPB has already indicated that it will spend a considerable amount of time this year scrutinizing LO compensation plans as part of its exams of supervised entities. And experts warn that some compensation strategies may raise the risk of fair lending violations.
In “Drawing Aces: Recruiting and Retaining Top LOs in the CFPB Era,” our expert panel of lawyers and recruiters will guide you through what’s standard compensation practice these days, what’s truly allowed and how you can structure your plans to meet both the rules and a competitive recruiting market.
Among the topics covered:
- Standard compensation models
- Pick-a-pay compensation plans
- Bonuses, retirement plans and other compensation based on profits
- Non-monetary recruitment/retention options
- CFPB exams
- Fair lending risk
Consumer Financial Services group partner Kris Kully (Washington DC) is a panelist.
For additional information, please visit the event website.