Posted To: Pipeline Press

There are plenty of MLOs (mortgage loan originators) out there very pleased with their earnings for 2020. In a non-random sample, several CEOs with whom I spoke had retail LOs earn more than a million clams, all in a compliant manner. It is good to remember that some of the changes made as a result of the “Financial Crisis” were in the area of LO comp(ensation), especially to prevent steering and taking advantage of borrowers. Importantly, LO Comp doesn’t restrict how creditors price their loans, only how they compensate LOs (including brokers). This has many ramifications, For example, many in the industry question worse pricing for self-employed borrowers, or better pricing for W-2 borrowers. The pricing has always varied for high credit score borrowers, or loan to value…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: Mortgage News Daily