While the final loan officer compensation rule is relatively "favorable" compared to earlier versions, originators should still use care in exercising some of the new improvements to it that give them a little more leeway, an attorney told attendees at the New York Association of Mortgage Brokers conference Monday.

Michael Barone, partner at law firm Abrams Garfinkel Margolis Bergson LLP, said a rule that allows loan officers to reduce compensation to pay "unforeseen" charges on behalf of the borrower, for example, still has a "vague" definition and in terms of what unforeseen means and is something the industry still has to be careful with.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry