1. Loan Originator Compensation
KNOWLEDGE. CLARITY. RELIABILITY.
(888)

2. Agenda Scope Definition Compensation Recordkeeping LO Qualifications
NMLS ID use
Policies and Procedures
Arbitration & Waivers
Financing of Credit Insurance

3. Scope LO Compensation Yes No Payment Processing & Late Fees
Rule
Closed-End Loans
Open-End Loan
LO Compensation
Yes No
Payment Processing & Late Fees
Yes – if principal
Payoff Statements
LO Qualifications
NMLS ID Requirement
Policies & Procedures
Arbitration Clauses
Credit Insurance Practices

4. Loan origination
Application
Assists applicants
Advertising

5. Prohibited Compensation
Terms
Proxy of terms
Steering
Double Payments

6. Terms
Interest
APR
Type of collateral
Prepayment Penalty

7. Secondary Market  Varies with term Add, drop or change?
Proxy
Varies with term
Add, drop or change?
Secondary Market 
Adjustable Rate

8. Allowable Compensation
Qualified Tax Advantage Plan
10% Rule
Flat Compensation

9. Scenarios 1-4
PGS. 5-6

10. Qualifications Registered under Safe Act Required training
Background Check
Credit Report
No breach of trusts violations
Financial Responsibility

11. NMLSR ID Disclosure
Application
Note
Security Agreement

12. Scenario 5
Pg.8

13. No Arbitration Requirement
No Waiver of Federal Law

14. Credit insurance Prohibition
Cannot Finance
Credit Life
Disability
Unemployment
HELOCs

15. Compensation Agreements
Record Retention
Compensation Records
Compensation Agreements
Three years

16. SAFE Act & Regulation G KNOWLEDGE. CLARITY. RELIABILITY.
(888)

17. Agenda Reg G vs. Reg H Scope MLO Registration Policies and Procedures
Unique ID
Penalties

18. Regulation G & H Regulation G Federal Regulated Banks Employees
Registered
Regulation H
State
Non-Banks
Licensed

19. Scope Consumer-purpose Dwelling Secured Mortgages HELOCs
Reverse Mortgages
Refis

20. Mortgage loan Originator
Takes Application
Offers/Negotiates Terms

21. MLO Exclusions
5 or Fewer
Clerical
Licensed Broker
Timeshare

22. Registration
Required prior to work
Cannot evade

23. Registration Information
Identifying Info
Employment History
Convictions
Civil Actions
Agency orders
Fingerprints
Authorization

24. Renewal
Required
Annual
Update in 30 days

25. Change in Status New Employee Update Information Prior to work Merger
Update in 60 days

26. Bank Registration Identifying Info EIN RSSD Regulator Contact
Subsidiary?

27. Annual independent testing
Policies & Procedures
Identify MLOs
Train
Procedure for MLO #
Accurate Info
Annual independent testing
Track & Monitor
EEs who fail to comply?
Background Checks
Third parties

28. NMLS/MLO/Unique ID # Upon Request Before MLO action Regulation Z?
Initial written
Regulation Z?

29. Penalties
Civil Penalties
$25,000

30. Scenarios 1-3
PGS. 5-6