The Dodd-Frank Act ensures that loan officers can’t ever earn any more or less money by selling a specific loan.
Verify your mortgage eligibility (Jan 26th, 2022)
It’s time for section four of our seven-part series talking about reform and mortgages. Specifically, today we’re going to talk about how lenders and loan officers get paid.
In the past, loan officers and lenders were able to steer consumers toward different loan offerings based on how they got paid. You could have been guided into a loan that you shouldn’t have been simply because that lender or loan officer had the opportunity to make more money by selling you that loan.
Oftentimes, it wasn’t about our best interests as buyers, but about theirs as lenders. The Dodd-Frank Act changed that with the Loan Officer Compensation Rule.Verify your mortgage eligibility (Jan 26th, 2022)
This rule makes sure that loan officers can’t ever earn any more or less money by selling a specific loan. The loan officer is now always paid exactly the same no matter what type of loan their buyer gets. This removes the possibility of being steered down the wrong path just because the lender gets paid more.
I love the tools that live within the Dodd-Frank Act. They’re designed to protect us as consumers, and this rule is probably my favorite. It makes sure we get the best loan for our needs, not for our lenders’ needs.
If you have any questions for me in the meantime or want to talk about your goals for your next home purchase, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.Show me today's rates (Jan 26th, 2022)