Blog Talk Radio Show Summary September 27, 2010: Loan Officer Compensation

2017-12-20T17:34:15+00:00 September 28th, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , |

The new rules which beginning April 1, 2011 will govern how loan originators (LO or LOs) are to be paid have been the topic of much discussion lately.  There seems to be as many opinions as there are people and there are as many unanswered questions as there are answers.  To try to help bring clarity to the situation and to try to address what is known, Tony Musgrave, mortgage industry veteran and practicing lawyer, joined the show today.  Tony’s general advice on this issue is to accept that change is coming and to begin to prepare for it.  He said that when considering the new rules, first consider where they came from.  The new rules are a result of political and public perception that the old compensation rules incented LOs to take advantage of borrowers and to put them in loan products and at loan rates which were advantageous for the originator, but not necessarily for the borrower.  Tony’s advice is to interpret the new rules with this perception as the basis for your new policies. What is known is that a loan originator cannot be paid an amount that differs based on the terms of the loans he [...]