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Wholesale Lenders Release Compensation Plans | Tucson Real Estate News

Wholesale Lenders Release Compensation Plans

Courtesy of Tucson Rates and Real Estate

comp1 150x150 Wholesale Lenders Release Compensation PlansSeveral Wholesale Lenders have released Compensation Plans to comply with the amendments added to Reg Z. You can bet they were prepared by legal counsel, as the Reg Z language is quite vague in how they can be interpreted.  My guess is we will see the most conservative interpretation to begin with, and as time goes by, it might change a little bit. I have had input from many people who will be affected by this  change and no two persons idea on how this will work has been the same.

Currently there are a few things going on in our Government that may or may not effect the future of these regulations.

1. US House of Representatives Finance Commitee is holding hearings this week to review the changes to Loan Originator Compensation.

2.  SBA has sent two separate letters to the Federal Reserve Board of Governors to clarify exactly how to implement the new laws.

It is very apparent there will be several problems implementing the new rules for small businesses. Most Lenders who fund brokered deals do not want to get involved in how their brokers pay their loan officers. First of all, they don’t want to spend time or money to see if their customers are in compliance. Second, they are only able to determine compliance with their interpretation of the law. Better left to others. My guess is the government will continue with their punishment of Mortgage Brokers and the consolidation of the mortgage industry to the FDIC insured Banks whom they (we) bailed out.

On the side bar of Tucson Rates and Real Estate, I have included a few of the compensation plans already released. The one from Crescent Mortgage seems to be the most in depth and easiest to understand. If they all interpreted the law the same, they would be identical. As you will see they are not, but close. My guess is that on a local scale, everybody wants to see what others are doing first before they announce their plans. A better compensation plan from one company could result in the migration of loan officers from other companies. We will have to wait and see.

 

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