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CORRECTION: New loan officer compensation rules take effect April 1

Fed says loan officer pay can't be based on loan terms

A Feb. 2 Inman News story, "Fed punts on real estate loan disclosures," incorrectly implied that the Federal Reserve Board was dropping planned changes to rules governing loan officer compensation.The new rules, which stipulate that loan officer compensation cannot be based on a mortgage transaction's terms, will take effect on April 1, as announced when the rule was finalized.The Federal Reserve has issued guidance advising small businesses on compliance with Regulation Z: Loan Originator Compensation and Steering 12 CFR 226.The Small Business Administration's Office of Advocacy has expressed concerns that mortgage brokers may still have difficulty determining if they are in compliance with the rules.Inman News columnist Jack Guttentag explored potential difficulties in interpreting the rules in a Feb. 16 column.The Fed announced on Feb. 1 that it would not complete three pending rulemaking proceedings, which included changes to mortgage loan disclosures issued under the Tru...

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