COMPENSATION - Lenders Compliance Group

SELECTED ISSUANCES AND ARTICLES

FAQs OUTLINE

LOAN ORIGINATOR COMPENSATION
Is there a “best practices” version of the anti-steering disclosure?

Are FHA and VA loans excluded from the anti-steering disclosure requirement?

What are five (5) questions that an originator should consider to complete the GFE?

What happens if the loan amount is too low to pay the compensation percentage?

How is pricing coordinated on a rate sheet?

Is the Yield Spread Premium (YSP) now defunct?

Does the compensation level stay the same if the borrower or lender pays the fees?

On VA loans, is there a limit to 1% origination on brokered Lender Paid options?

May a correspondent still receive a Service Release Premium (SRP)?

What are the implications for compensation paid by affiliated creditors?

How is compensation treated for two affiliated loan originators?

Does the implementation of the Rule supersede other regulatory requirements?

How should a lender update its requirements to purchase correspondent loans?

Broadly speaking, what are the anti-steering prohibitions under the Rule?

Are salaried loan officers of non-profits subject to the Rule?

If a broker has multiple branches, what is an acceptable compensation plan?

May the closing costs be included in the loan amount in a refinance transaction?

Is the RESPA treatment of charges and credits disregarded in under the Rule?

Is there a simple, decision-based flow chart for the Consumer Paid model?

Is there a simple, decision-based flow chart for the Lender Paid model?

What federal government agency handles violations of the Rule?

In the Consumer Paid model, using a rate sheet how are fees disclosed on the GFE?

In the Lender Paid model, using a rate sheet how are fees disclosed on the GFE?

May Box 1 of the GFE be decreased on a Consumer Paid transaction at closing?

How are the fees in Block 2 of the GFE applied?

May the compensation be greater for government loans than conventional loans?

Is there a chart that highlights similarities and differences between the two models?

What are six pricing scenarios for brokers?

How is each of the six pricing scenarios for brokers disclosed on the GFE?

Is there a chart for fees permitted by the Lender Paid and Consumer Paid models?

How is the origination fee used by a broker to receive compensation?

What is the “salary” that must be paid to a loan officer employee?

How should overtime pay be calculated for loan officer employees?

What are the remedies for not paying overtime to a salaried loan officer employee?

What are the implications for the administrative exemption?

If a lender receives an application after it is locked, what compensation plan applies?

Is it permissible to pay a flat fee plus a commission to a loan originator?

How is compensation on employee loans structured?

Is there a chart that outlines the application of seller concessions or contributions?

Is there a chart for disclosing originator compensation on the Good Faith Estimate?

Is there a chart for applying broker credits to the borrower?

Is there a chart for applying limits to interest rate credit (above par pricing)?

Is there a chart for determining the broker compensation amount?

In a compensation tier, may an interest rate be chosen below the originator's tier?

May an interest rate below a compensation tier require a borrower to pay the discount?

In a delayed closing, how is a rate lock extension treated?

On the GFE, where are lender costs placed resulting from all adjustments?

Using a rate sheet, where is an originator's compensation placed on the GFE?

Why do many lenders pay compensation based on lock date versus the origination date?

How does a lender monitor that a premium does not pay the loan originator's fees?

How to disclose the appraisal pass-through fee on the GFE and the HUD-1?

Is it a valid changed circumstance to switch from a consumer paid to lender paid model?

In Texas, the doc prep is part of origination fee, so how is compensation applied?

Who pays for GFE tolerance violations?

In the consumer model, how to reconcile GFE borrower credit with broker compensation?

What happens to fees associated with refinances that occur after locking and/or submission?

How to disclose buying down the rate, specifically pertaining to Block 2 of the GFE?

Must the cost of the credit report be charged in the lender paid transaction?

Is there a “grace period” for relating to loan compensation errors on the GFE?

Does the anti-steering disclosure apply to both consumer paid and lender paid models?

May a recruitment fee be paid on loan transactions if the recruiter is not an LO?

Is a wholesale Account Executive considered a loan originator?

Are fixed overhead costs a factor in a loan originator compensation plan?

When is a third party fee deemed to be compensation?

May the interest rates vary based on the financing and consumer credit profile?

Must an originator establish a business relationship with a creditor to use the safe harbor?

What constitutes a “possible loan offer?”

Are loan officer employees of lenders required to issue an anti-steering disclosure?

For safe harbor protection, is three (3) the maximum number of loan options to disclose?

What happens if the safe harbor is not met?

How broad is the prohibition on steering?

What are the three ways to satisfy the prohibition on steering?

Are coop loans subject to the compensation regulations?

What do the MMC Examiner Guidelines apply to?

What is the structure of the MMC Examiner Guidelines?

Are contributions made to a profit sharing plan considered compensation?

May a lender make contributions to a profit sharing plan?

436 FAQs - 139 Pages
[UPDATE: 12/7/11]

LOAN ORIGINATOR COMPENSATION

EXAM PREPARATION

Litigation

U. S. Court of Appeals - Order Dissolving Administrative Stay in NAMB/NAIHP v FRB (4/5/11)

NAMB and NAIHP's Joint Reply Brief in Further Support of their Emergency Motions, U. S Court of Appeals - DC (4/5/11)

FRB's Response in Opposition to the NAMB and NAIHP's Motions for Emergency Stay Pending Review, U. S. Court of Appeals - DC (4/4/11)

U. S. Court of Appeals - Granting a Stay in Implementation of the Final Rule, Pending Appeal (3/31/11)

U. S. District Court - DC - Memorandum Opinion - Denying NAIHP's and NAMB's Application for Temporary Restraining Order and Preliminary Injunction (3/30/11)

NAIHP's Reply to FRB's Memorandum in Opposition to Temporary Restraining Order and Preliminary Injunction (3/25/11)

Amicus Brief: Community Mortgage Banking Project and the Community Mortgage Banking Research Fund (3/24/11)

FRB's Memorandum in Opposition to Plaintiff's (NAIHP's and NAMB's) Applications for Temporary Restraining Order and Preliminary Injunction (3/18/11)

FRB's Motion to Consolidate: National Association of Independent Housing Professionals (NAIHP) and National Association of Mortgage Brokers (NAMB), US District Court, District of Columbia (3/10/11)

National Association of Mortgage Brokers v. Board of Governors of the Federal Reserve System, ETAL, US District Court, District of Columbia (3/9/11)

National Association of Independent Housing Professionals, Inc. v. Board of Governors of the Federal Reserve System, US District Court, District of Columbia (3/7/11)

Presentations

Live Webinar, Regulation Z - Loan Originator Compensation, Federal Reserve Board (3/17/11)

Advocacy

Call to Action, Impact Mortgage Management Advocacy and Advisory Group (IMMAAG), Announcement: Advocacy Package (4/2/11)

Issuances

NAIHP President Marc Savitt and nationally recognized mortgage pro Fred Glick report on the loan officer compensation issue, implications for the mortgage broker community, and legislative or legal efforts to delay the April 1, 2011 start date.

Fair Labor Standards Act

Mortgage Bankers Association (MBA) v United States Department of Labor (USDL), Plaintiff's Motion for Summary Judgment (1/12/11)

USDL - Administrator's Interpretation No. 2010-1, Application of the Administrative Exemption: Employees who Perform the Typical Job Duties of a Mortgage Loan Officer (3/24/10)

USDL - Administrator's Interpretation No. 2010-1, Application of the Administrative Exemption: Employees who Perform the Typical Job Duties of a Mortgage Loan Officer, FLSA2006-31 (9/8/06)

Letter: NAMB to USDL, Wage and Hour Division, Employment Standards Administration (9/14/05)

Department of Labor, Wage and Hour Division, 29 CFR Part 541: Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees, (8/23/04) - Final Rules

Department of Labor, Wage and Hour Division, 29 CFR Part 541: Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees, FR: 68/61 (3/31/03) - Proposed Rules