How You Explain LO Comp Also Matters Increasingly I have been called by clients frustrated at emails and other solicitations that offer loan officers “clearly illegal” compensation plans that these would-be employers claim have been blessed by counsel.
For instance, I looked into a plan that purportedly permitted loan officers to be paid based upon the profitability of the loans they closed. Of course, what the job solicitation did not mention was that it was a profit sharing plan subject to the 10% cap on the loan officers’ compensation. Some lenders believe that as long as what they do is legal, it does not matter how they describe it. Such thinking is misdirected. Click here to read the rest of the article on National Mortgage News.