Mortgage Consultant Compensation

April 15th, 2011

Mortgage Consultant Compensation

As of April 1st, 2011 new rules were enacted which states mortgage companies can no longer compensate their employees based on any terms and conditions of the loan (meaning the interest rate, loan program, etc). According to the Federal Reserve Board, the goal of this new regulation was to “protect mortgage borrowers from unfair, abusive, or deceptive lending practices that can arise from loan originator compensation practices.”

How will this affect you?

Understanding is key. Standardizing compensation will help consumers choose their mortgage provider based on truly comparable services and products rather than just rates and fees. With these changes the mortgage industry may begin to shrink as those unscrupulous mortgage companies who took advantage of borrowers will find it even harder to stay in business.

How will this affect Axiom Financial?

Very little. We have always made it our highest priority to find the best loan program for our clients. Our commitment to responsible lending is the foundation of our company.

We are committed to doing the right loans for the right purpose.

Change is Constant

And change can be good. Today’s underwriting guidelines require more documentation in order to verify the validity of the borrower’s commitment to homeownership and ability to repay. Though tougher standards make it harder ot qualify, it creates a more vested consumer. And vested homeowners keep neighborhoods stable and the housing industry healthy.


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