In a training scenario, a manager proposes higher pay for loans with a higher interest rate. What action best follows the rule?
Correct Answer
B) Keep compensation independent of loan terms or proxies
Lines 55-63; 12 CFR 1026.36(d)(1). Compensation cannot be structured around transaction terms or proxies for those terms. Therefore, the correct response is "Keep compensation independent of loan terms or proxies".
Why This Is the Correct Answer
Lines 55-63; 12 CFR 1026.36(d)(1). Compensation cannot be structured around transaction terms or proxies for those terms. Therefore, the correct response is "Keep compensation independent of loan terms or proxies".
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