MLO Compensation Rule, BSA/AML (Bank Secrecy Act/Anti-Money Laundering, Mortgage Assistance Relief Services (MARS) Rule Flashcards
What two things does the Mortgage Loan Originator Compensation Rule prohibit?
- ) It prohibits creditors from compensating MLOs based on the loan’s interest rate or other terms.
- ) Dual Compensation
What does Compensation include under the Mortgage Loan Originator Compensation Rule?
It includes commissions, bonuses, salaries, merchandise, trips and any other financial incentives, or thing of value.
How many years must Loan Originator Organizations keep record of payments from a creditor and payments to individual originators?
3 years.
What is Dual Compensation?
When a Loan Originator tries to charge the borrower and the creditor. “Getting paid from the front-end and the back-end.”
What is another name for the Mortgage Loan Originator Compensation Rule?
The LO Compensation Rule
What does the BSA/AML stand for, and what does it require of financial institutions?
Bank Secrecy Act/Anti-Money Laundering; it requires financial institutions to take steps to prevent and report cases of “money laundering.”
What is another name for the BSA/AML?
The Anti-Money Laundering Law
The BSA/AML require financial institutions to file reports of cash transactions (Depositing, Withdrawing, Transporting) exceeding how much money?
$10,000
What does the MARS Rule stand for and what is its regulation?
Mortgage Assistance Relief Services Rule; Regulation O
What does the MARS Rule help do?
Protect distressed homeowners from loan modification, short sale, and foreclosure-prevention scams.
What 2 things does the MARS Rule do?
- ) Bans collecting fees until homeowners have accepted a written offer from their servicer or lender.
- ) Prohibits the MLO from advising the consumer to not communicate with lenders.
