Under Dodd-Frank compensation rules, an MLO may receive increased compensation for all of the following EXCEPT:
Correct Answer
C) Originating a loan with a higher profit margin
MLOs cannot receive compensation based on the profitability or terms of individual loans. This would constitute compensation based on loan terms, which is prohibited. However, compensation based on loan amount, volume targets, and professional development is permitted under Dodd-Frank.
Why This Is the Correct Answer
MLOs cannot receive compensation based on the profitability or terms of individual loans. This would constitute compensation based on loan terms, which is prohibited. However, compensation based on loan amount, volume targets, and professional development is permitted under Dodd-Frank.
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