Dear Mortgage Industry, Did you know that federal "LO Compensation" rules that the "LO" stands for "Loan Originator"? The alarming lack of awareness about these rules in our industry is evident. I find it odd that most originators and independent brokerages defined as such, nearly all of them, need help understanding these rules and regulations around how they can or cannot be paid. They rely on or defer to someone else with a financial interest to obtain information about it instead of independent, unbiased research for understanding. While the originator and the employer can be held liable for violations, why do so few people in our industry care to read the laws in the text independently? It's important to note that the LO Compensation rules have been in place for a significant period -12 years to be exact. They have remained unchanged, underscoring their stability and importance in our industry. #mortgage #locomp #varyingcomp #terms #conditions #proxytest #pointbanks
It’s widely known that some of these big box brokers and their compensation structures are a point of contention. Many Loan Officers (LOs) boast about these schemes, perhaps not realizing they might be in violation. When rates drop and early payoff penalties (EPOs) come into play, brokers will be eager to reclaim their share of the profits from the Mortgage Loan Officers (MLOs). The implications will become clear then. The kool-aid many have been drinking, may not taste so great....
#THIS
Andrew (Andy) W. Harris, CRMS thank you for sharing 🙌
Let's make full disclosure the norm!
Certified Encompass Administrator and Certified Scrum Master
2moWell that's rather concerning, no? I wonder how many of them don't have access to a compliance expert to interpret them and how many are just lazy or presume too much.