New Loan Officer Compensation Bill Introduced

Rep. Barney Frank, D-Mass, introduced legislation that allows loan officers at brokerage firms to be more competitive when customers are shopping for a home loan. The bill’s intent is to permit a reduction in an originator’s employee’s compensation when it results in a benefit to consumers who are shopping for the best terms on a home loan,” according to a summary of the bill known as H.R 4076. Two California congressmen, Gary Miller (R) and Pete Stark (D), are co-sponsors of ‘The Loan Originator Compensation Bill.’ When a LO makes an offer to a customer under current law, they cannot make a counteroffer when competitors offer a better rate. Brokers often complain that they have to standby while banks undercut their pricing. The Frank bill would change that — provided the consumer ends up with an annual percentage rate (APR) that is lower than the original offer. Source: National Mortgage News

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One Response to New Loan Officer Compensation Bill Introduced

  1. Joe says:

    Barney Frank has done enough damage to housing and “protecting” consumers, the congressman is an idiot and his last day in dis-service to this country cant come soon enough, he needs more time at home paying attention to whats happening under his own roof the dufus

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