LO Comp insights: CFPB definitions and the ‘devilish details’

The Consumer Financial Protection Bureau’s loan originator compensation rule makes important changes to the Federal Reserve’s existing loan originator definition to reflect provisions of the Dodd-Frank Act. The CFPB also revised and expanded existing commentary on the loan originator definition to clarify how various scenarios apply to the definition. Understanding the definitional changes and associated commentary will be important to determining who in an organization is covered under the CFPB’s rules.