New CFPB Proposed Changes: Part 3 – Regulation Z: Loan Originator Compensation Rules
Two hour tele-web seminar November 1, 2012

The CFPB recently proposed significant changes to Regulations B, Z and X. This three-part program explains the proposals in detail and what they will mean to your bank. Part 3 addresses proposed changes to loan originator compensation rules.

This tele-web seminar will begin on Thursday, November 1, 2012 at 11:30 AM to 1:30 PM Pacific Time.

On August 17, 2012 the Consumer Financial Protection Bureau (CFPB) released a 369-page proposal to amend Regulation Z. The amendments involve loan originator compensation. The proposal clarifies and expands on existing regulations governing loan originator compensation and qualifications. They also implement new laws, including a restriction on the payment of upfront discount points, origination points, and fees on most mortgage loan transactions.


Upon completion of this program, participants understand:

  • The requirement that before imposing upfront points and/or fees on a consumer in a closed-end mortgage transaction, the creditor must make available a comparable, alternative loan with no upfront discount points, origination points, or fees that are retained by the creditor, broker, or an affiliate of either (a “zero-zero alternative”).
  • The general ban on paying or receiving commissions or other loan originator compensation, based on the terms of the transaction (other than loan amount), with some refinements:
  • Revised restrictions on pooled compensation, profit-sharing, and bonus plans for loan originators.
  • Requirements for a loan originator, not already required to be licensed under the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act), to meet character, fitness and criminal background check standards that are equivalent to SAFE Act requirements and receive training commensurate with the loan originator’s duties.
  • Miscellaneous provisions that would:
  • Ban general agreements requiring consumers to submit any disputes that may arise to mandatory arbitration rather than filing suit in court.
  • Ban the financing of premiums for credit insurance.


Loan originators, officers, assistants, compliance officers and auditors.


Jack Holzknecht, a principal with Pegasus Educational Services, LLC, has provided training to thousands of bankers and examiners for 36 years. Jack�s career began as a federal bank examiner. He also headed the form and software division of a regional consulting company and spent 7 years in charge of their education division. He also developed and delivered training for the FDIC and OTS.

Credit Information

2.0 total credits


Member price: $250.00 | Non member price $500.00