In April of 2011, the amendment to Regulation Z that prohibits payments to loan originators based on the terms or conditions of the transaction other than the amount of credit extended became effective. For many depository institutions, this seemed a nonevent, while for other depository institutions and mortgage brokers, it was a huge shift in the way compensation was paid. However, for any entity that has a profit sharing/401(k) plan and that is also subject to the provisions of the amendment, there is more to consider.
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