A mortgage brokerage pays its MLOs a flat fee of $2,000 per closed loan, regardless of loan amount or terms. Additionally, the company pays a quarterly team bonus to all MLOs if the office meets certain customer satisfaction scores. Which statement is correct?
Correct Answer
C) Both compensation components are permitted under Dodd-Frank
Dodd-Frank permits MLO compensation based on the number of loans originated (flat fee per loan) and allows additional compensation based on factors unrelated to loan terms, such as customer satisfaction metrics or overall business performance.
Why This Is the Correct Answer
Dodd-Frank permits MLO compensation based on the number of loans originated (flat fee per loan) and allows additional compensation based on factors unrelated to loan terms, such as customer satisfaction metrics or overall business performance.
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An appraiser contacts an MLO directly to clarify property details after discovering the address on the appraisal order doesn't match the legal description. This communication is:
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