The CFPB LO Compensation Confusion

There has been a ton of confusion surrounding the Consumer Financial Protection Bureau’s 37 pages of rule making on mortgage compensation. We just want to point out that the rule is far from settled -- although some in the industry believe the “fix is in.” (The official comment period is expected to begin in early July.) However, some industry officials who have read the rule closely note the flat fee language does NOT affect compensation on ‘lender paid’ transactions.  If you want a quick view, check Appendix C on page 36 of the rule, one mortgage professional instructed us. Another LO pointed out that some readings of the rule suggest that the origination 'fees' can be flat (i.e. underwriting, processing, admin, and so on) but that the origination 'fees' have nothing to do with compensation. Stay tuned.