It’s been a long day and inputting the compensation for this mortgage loan originator is the last thing on the to-do list before the lender can close up shop for the day and head home.
The MLO enters 1.5% into the system. It’s ready to send.
Wait – that wasn’t right. The lender looks back through the records and sees this MLO should be getting comped at 2%, but somehow the compensation has been entered wrong. And to make matters worse, this was the third loan where comp was entered wrong.
The scenario above is not unheard of – it’s not even uncommon – in the lending world. The unfortunate truth, however, is that little can be done to rectify it once the mistake has been made.
That’s because mortgage loan originator compensation rules are strictly regulated by the Consumer Financial Protection Bureau. The housing industry is actively calling for a change to these regulations, asking the bureau to allow mortgage loan originators more freedom when it comes to changing their compensation.