Iowa Banking Law Blog
Coming soon to a mortgage loan originator near you!
May. 16, 2012 – L. Allyn Dixon Jr., Iowa Banking Law Blog
Last week, the Consumer Financial Protection Bureau said we can look forward this summer to seeing proposed residential mortgage loan origination standards. The CFPB aims to have final rules adopted by January 2013 that will focus on such things as how loan originators are compensated, points and fees charged in connection with mortgages, and uniform loan originator qualifications.
The CFPB’s proposal stems from the Dodd-Frank Wall Street Reform and Consumer Protection Act’s mandates, but the proposed rules to be published this summer are not expected to address Dodd-Frank’s anti-loan steering prohibitions by loan originators, according to the CFPB.
The CFPB is apparently looking at imposing certain requirements for depository institution loan originator (who now must register under the SAFE ACT) that would be similar for non-depository institution loan originators, who must be licensed. Consideration is expected to be given to mandatory training based on an institution’s size and mortgage activity.
The CFPB will also take into account Dodd-Frank provisions concerning loan originator compensation by consumers and will consider a possible exception for creditors to pay originator compensation in some cases under certain circumstances and conditions.
The CFPB hopes to address the broader compensation as it relates to qualified retirement and related plan as well.
We will keep you posted as the CFPB moves forward with its rulemaking. You can view the CFPB’s release here.
Tags: CFPB, depository institution, Dodd-Frank, loan origination standards, loan originators, residential mortgage
Industry Categories: Banks & Financial Institutions