Loan Officer Compensation Under Fire

It's no secret that loan officers (including both the mortgage banker LO and broker of the species) are none too thrilled with upcoming Federal Reserve rules that crimp how much a broker can make. (Details to follow in a story appearing in Monday's National Mortgage News.) But one thing seems clear: loan brokers continue to be unhappy that they have to disclose yield spread premium (YSPs) payments when mortgage bankers (the shops that actually fund the loan) do not have to disclose their servicing-released premiums (SRPs). This inequity (of sorts) may continue, but you can expect brokers will continue to chip away at it in their talks with regulators, especially the new Consumer Financial Protection Bureau, whose de facto leader is Elizabeth Warren…