A branch manager asks about a loan file because the borrower pays the broker directly and the creditor also offers compensation. What should happen?
Correct Answer
A) Decline creditor compensation for that transaction
Lines 100 and 268-269; 12 CFR 1026.36(d)(2)(i). Direct consumer-paid compensation triggers the dual-compensation restriction for that transaction. Therefore, the correct response is "Decline creditor compensation for that transaction".
Why This Is the Correct Answer
Lines 100 and 268-269; 12 CFR 1026.36(d)(2)(i). Direct consumer-paid compensation triggers the dual-compensation restriction for that transaction. Therefore, the correct response is "Decline creditor compensation for that transaction".
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