Loan officers will face restrictions on their ability to offer expensive mortgages under a new rule issued by the Consumer Financial Protection Bureau (CFPB) on Jan. 18. The rule bars compensation that varies with the loan terms; therefore, an originator cannot earn more by putting a borrower into a loan with a higher interest rate, a prepayment penalty, or steeper fees. It also abolishes "dual compensation," in which loan officers are paid by the consumer as well as by the creditor or other entity. "Before the financial crisis, many mortgage borrowers were steered towards risky and high-cost loans because it meant more money for the loan originator," said CFPB director Richard Cordray. "These rules will hold loan originators more accountable by banning the incentives that led so many of them to direct consumers toward disaster."