Did You Know?
Upcoming Changes to Loan Originator Compensation
Why does this matter to you? It's important to know you/your clients are getting the most appropriate and most economical loan.
By now you may have seen the various announcements regarding how lender/loan originator compensation will be restricted under the TILA (Truth In Lending Act) Compensation Rule. In summary, the following rules apply under this new regulation effective April 1, 2011:
• Loan originator compensation cannot be based on the interest rate or loan terms and conditions.
• The loan originator can be compensated by the borrower or lender, but not both in a transaction.
• The loan originator cannot steer the borrower to a loan solely to increase originator compensation.
Here's how you will know if you/your clients are getting the most economical loan:
1. How much does it cost to close?
2. What is the monthly payment?
3. Is the cost over your desired time in the home better or worse when comparing lenders?
While each regulatory change brings challenges, rest assured that I remain committed to offering the best price and service in the industry. Please contact me with questions or comments any time.
http://www.mijoymortgage.com/
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