350 FAQs - Loan Originator Compensation

Lenders Compliance Group


LOAN ORIGINATOR COMPENSATION 

350 Questions and Answers 

105 Pages 

12 Months Updates!

Email Notification for Updates 

Download directly from Secure Portal  

Version 16 - June 27, 2011



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 when completing 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 pays the fees or the lender pays?
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 with lenders?
May the closing costs be included in the loan amount in a refinance transaction?
Is the RESPA treatment of charges and credits disregarded in all respects 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 that outlines 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 has been 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 the 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?


FAQs OUTLINE

LOAN ORIGINATOR COMPENSATION

 
$125
 


Lenders Compliance Group is the first full-service, mortgage risk management firm in the country,
specializing exclusively in outsourced residential mortgage compliance
and offering a full suite of services in mortgage banking.

We are pioneers in outsourcing solutions for mortgage compliance.    

 Let us help!


 Isn't it time to bring in the professionals?