A mortgage team asks a branch supervisor about MLO compensation during an annual compliance meeting. Which answer should guide the file?
Correct Answer
D) Use compensation plans that do not vary by APR or fees
loan originator compensation cannot be based on transaction terms or proxies and dual compensation is restricted. This item uses an exam-style scenario; any file details in the stem are illustrative and the governing rule controls the compliant response. The best answer is "Use compensation plans that do not vary by APR or fees".
Why This Is the Correct Answer
loan originator compensation cannot be based on transaction terms or proxies and dual compensation is restricted. This item uses an exam-style scenario; any file details in the stem are illustrative and the governing rule controls the compliant response. The best answer is "Use compensation plans that do not vary by APR or fees".
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