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 of 2009, the Board of Governors of the Federal Reserve System (Board) issued a proposed rule on loan originator compensation august. 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. Continue reading Subtitle A: Loan Originator Compensation Restrictions and Enforcement