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A mortgage team asks a policy analyst about MLO compensation restrictions during an NMLS filing review. Which answer should guide the file?

Correct Answer

A) Keep compensation independent of loan terms or proxies

Loan originator compensation cannot be based on transaction terms or proxies and dual compensation is restricted. The best answer is "Keep compensation independent of loan terms or proxies".

Answer Options
A
Keep compensation independent of loan terms or proxies
B
Treat the Dodd Frank MLO Compensation review as complete because the file contains a related PMI cancellation note.
C
Change MLO pay after the lock because the borrower chose discount points.
D
Offset a pricing exception by reducing only this originator compensation.

Why This Is the Correct Answer

Loan originator compensation cannot be based on transaction terms or proxies and dual compensation is restricted. The best answer is "Keep compensation independent of loan terms or proxies".

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