Financial institutions may compensate mortgage loan originators out of a profit pool derived from loan originations, according to a Consumer Financial Protection Bureau bulletin.
That means employers can contribute to qualified profit-sharing, 401(k) and employee stock-ownership plans on behalf of mortgage originators.
The bulletin is meant to answer questions, but is not the final word. It is meant to clarify previously issued rules from the Federal Reserve Board that went into effect April 6, 2011, and prevent institutions from compensating mortgage loan professionals based on their originations.
“We anticipate providing greater clarity on these arrangements in connection with a proposed rule on the loan origination provisions in the Dodd-Frank Act,” the CFPB wrote in the bulletin. A proposed rule is expected by this summer.