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 regarding the Federal Reserve System (Board) issued a proposed guideline on loan originator settlement. 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 therefore the Dodd-Frank Act, however the Board determined that delaying its guideline would harm customers.
The Board’s final rule became effective on April 6, 2011. Then, on January 20, 2013, the CFPB circulated its own loan originator payment rule that is finalRule). The Rule strived to reconcile the Board’s payment and steering conditions utilizing the Dodd-Frank Act and in addition included some extra conditions unrelated to originator compensation. (más…)