Thanks Dave and hello everyone. Today I just wanted to give you a heads up that loan officer compensation is back in the headlines. So, in the MBA news link that’s published every Monday, they have their advocacy update. I found that they have already scoured the Trump administration spring 2025 unified agenda of regulatory and deregulatory actions, of course that apply to our industry. And so what’s in here was an imminent advanced notice of proposed rulemaking. Now, what these are, for those of you who may not remember this, is that first stage of when regulators put out that, hey, we’re assembling a proposed rule. This is an advanced notice, and what we’re looking for is your comments on, are we asking the right questions in the proposed rule? What are the topics that we should be pulling in? So, this early stage is actually the time to really get involved. I will let you know as soon as this is published, but this is the stage I like people to get involved in. Don’t wait till the last minute when the laws already published and then complain. So in this particular piece, what they’re looking to have us address is the discretionary compensation provision of loan originator compensation. And in this piece of the Truth and Lending Act, that’s where it talks about how bonuses can be paid to originators, which is always very tricky because You want to be able to compensate your salespeople, keep them motivated throughout the year as they, to have them continue to bring in volume, continue to hit different goals keep your company competitive in relationship to other companies. And so, these discretionary bonuses start to really pinch down how we can pay loan officers because there’s so much that requires lenders to be consistent with every single loan and loan type as far as their compensation goes. But to get the nitty gritty on that, you really need to talk to Mitch Kider and talk to an attorney if you have things that you wanna talk about to get around those or ways to make those work on a day-to-day basis under the rules today. But in this proposed rule that we are now going to be watching for very closely, we’ll have the chance to comment on how this wording can be restructured or should it simply be eliminated. So that’s what we will be watching for. The Trump administration has directed that the CFPB should put something on the table for us. We know that they have talked about this in past discussions with the Office of Management and Budget according to consumer law reporting. So we will be watching. That’s the only news that’s out there as of today is that this looks like it’s going to be coming to our plates in the coming months, so we’ll be watching for this and let you know that’s the scoop for today. Dave, I’m gonna pass it back to you. Have a great day everyone.
Alice Alvey, Master CMB
She handles development of their World Class Training program designed to support UHM partners and organizational effectiveness.
Prior to UHM, Alice served as Senior Vice President at Indecomm leading the Indecomm-Mortgage U division, Internal QA and Compliance and SaaS technologies. Indecomm acquired Mortgage U in 2013, where Alice was President/Co-founder, providing training and consulting since 1996. Prior to MU she served as SVP of Operations at a national bank overseeing operations for wholesale, retail and correspondent from underwriting through servicing, and compliance.
She has been in the trenches of mortgage lending operations from application through servicing for over 30 years. Her authoring work in training content, policies and procedures and the FHA/VA Practical guides illustrates her ability to bridge regulatory requirements with day-to-day operations.
Alice has been a weekly contributor to the Lykken on Lending show since its beginning in April 2009 and has made her weekly contributions to 450+ episodes!