The CFPB examines LO comp & reverse mortgages - Skip to content

The CFPB examines LO comp & reverse mortgages




The CFPB is closely examining loan officer compensation, an agency priority that is addressed in the Bureau’s Supervisory Highlights. Loan Officer Compensation rules fall under the Truth in Lending Act which was passed in 2013. This rule was enacted as a way to reduce product steering, and to prevent originators from charging different fees or interest rates based on any term or condition of the loan.


Put simply, mortgage originators cannot be paid more or less than a typical loan file based on Product type (Fixed, ARM, Bond, etc), The interest rate or APR, Loan origination fee, The type of collateral, The existence of a prepayment penalty.


For reverse mortgages typical variations for an HECM include a fixed rate, an annual adjustable, or a monthly adjustable. Each has its unique fit based on the needs of the homeowner and the ideal structure of the loan.


Under the current regime of Reg or Regulation Z  LO compensation is

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Editor in Chief:
As a prominent commentator and Editor in Chief at, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.
Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.
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1 Comment

  1. thanks for the info Pudge Erskine.

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