We received the rule on February 15, 2013. Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Bureau of Consumer Financial Protection (Bureau), entitled Loan Originator Compensation Requirements Under the Truth in Lending Act (Regulation Z) (RIN: 3170-AA13). Subject: Bureau of Consumer Financial Protection: Loan Originator Compensation Requirements Under the Truth in Lending Act (Regulation Z) This final rule is designed primarily to protect consumers by reducing incentives for loan originators to steer consumers into loans with particular terms and by ensuring that loan originators are adequately qualified and (2) the Bureau complied with applicable requirements in promulgating the rule.Ĭommittee on Banking, Housing, and Urban Affairs
The final rule also establishes tests for when loan originators can be compensated through certain profits-based compensation arrangements. The final rule revises or provides additional commentary on Regulation Z's restrictions on loan originator compensation, including application of these restrictions to prohibitions on dual compensation and compensation based on a term of a transaction or a proxy for a term of a transaction, and to recordkeeping requirements.
IN ACCORDANCE WITH THE TRUTH IN LENDING ACT REGISTRATION
The final rule implements requirements and restrictions imposed by the Dodd-Frank Act concerning loan originator compensation qualifications of, and registration or licensing of loan originators compliance procedures for depository institutions mandatory arbitration and the financing of single-premium credit insurance. GAO found that (1) the final rule implements amendments to the Truth in Lending Act (TILA) made by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). GAO reviewed the Bureau of Consumer Financial Protection's (Bureau) new rule on loan originator compensation requirements under the Truth in Lending Act (Regulation Z).
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