5. Additional MLO requirements will be in place.
New rules will regulate MLO compensation practices by prohibiting steering incentives and dual compensation (that is, a loan originator cannot be paid by both the consumer and the creditor).
The MLO regulation also will impose new SAFE Act (Secure and Fair Enforcement for Mortgage Lending) duties on credit unions, requiring employees involved in loan originations to meet certain character, fitness, and background standards; receive training appropriate for their duties; and include their Nationwide Mortgage Licensing System & Registry (NMLSR) identification numbers on loan documents.
NEXT: Two new appraisal requirements
WASHINGTON (5/4/15, UPDATED 1:45 p.m. ET)--Building on the success credit union advocates are having in getting data breach legislation introduced in the U.S. Congress, today CUNA launches a new call to action to garner support for the recently introduced House Data Security Act of 2015 (H.R. 2205).