In case you haven’t heard, LO compensation is being tracked a little differently. I am sure you do know by now, because everybody has been talking about it since it first came up. CompEditor is the new tool that was chosen in order to help lenders maintain LO compensation. Regulation Z has had its day, and now compensation has taken its lick.
Compensation no doubt has been a topic of discussion and a sore one at that, but steps have been taken to make sure that every detail of the transaction has been recorded. The compensation on the records must be the same as it was when the interest rate was agreed upon for the loan transaction. The records must be retained for two years once the mortgage has closed.
While I do know that many borrowers were being charged too much, they were also receiving the wrong loan which is the real issue at hand. Not only that, but you had many who were getting into the business as loan officers just to see if they could make a quick buck. You had those who really knew the business and cared about the borrowers working hard and making money because they knew the programs and they knew the laws.
While compensation should be controlled, it doesn’t really resolve any issues other than careful paperwork. There isn’t anything wrong with someone being paid for a service that they provide, but again the truth is if the goal is to resolve the lending issues we have been dealing with then we still have much more to do than worry about what loan officers are being paid.
-Mayer Dallal
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