Brief Reputation For the Rule
The first iteration of the loan officer compensation rule did not stem from the Dodd-Frank Act unlike many other CFPB rules. In August of 2009, the Board of Governors of this Federal Reserve System (Board) issued a proposed guideline on loan originator payment. The Dodd-Frank Act ended up being enacted on 21, 2010 and contained restrictions that closely, but not entirely, followed the Board’s proposed rule; however, less than a month after the Dodd-Frank Act was enacted, the Board finalized its rule july. The Board acknowledged that there have been differences when considering its guideline while the Dodd-Frank Act, nevertheless the Board determined that delaying its guideline would damage customers.
The Board’s final rule became effective on April 6, 2011. Then, on January 20, 2013, the CFPB circulated its very own loan originator settlement last rule (Rule). The Rule strived to get together again the Board’s compensation and steering conditions using the Dodd-Frank Act and in addition included some extra conditions unrelated to originator compensation. Read More