Tag: LO Comp Rule

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CFPB Brings First Action for Violations of Loan Originator Compensation Rule

CFPB Brings First Action for Violations of Loan Originator Compensation Rule

By: Jonathan D. Jaffe,  Rebecca Lobenherz

On July 23, the Consumer Financial Protection Bureau (CFPB) sued a national mortgage lender and two of its officers for allegedly violating Regulation Z’s loan originator compensation rule (the LO Comp Rule or the Rule) by paying bonuses to employees for steering borrowers to loans with higher interest rates. (See here.) The case was referred to the CFPB by investigators with the Utah Department of Commerce, Division of Real Estate. This is the first publicly announced judicial action the CFPB has brought enforcing the Rule. Read More

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