Fed: Flat Fees for Loan Officers Coming Soon

National Mortgage News  
August 31, 2009
Collins, Brian
Vol. 33, No. 47, P. 2

The Federal Reserve Board has issued a final proposal on a rule that would require mortgage lenders to pay originators a flat fee, which would be stated upfront and would not increase based on changes in the interest rate or other loan terms. The mortgage industry has until Dec. 24 to comment on the change to the Truth in Lending Act rule, which is described as an attempt to regulate how yield-spread premiums are set. The Fed also has proposed another rule involving TILA that would create a new set of disclosures for home-equity lines of credit and new protections for borrowers. 

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