Loan originator compensation is complex. Despite the Consumer Financial Protection Bureau's 2014 changes to loan originator compensation requirements under the Truth in Lending Act (Regulation Z), there is still tremendous flexibility in how lenders can legally compensate their LOs.
This flexibility is crucial for lenders looking to attract and/or retain top talent. However, without a proper system in place to manage the myriad of compensation plans a lender may have in place, pay day can easily turn into a nightmare for the payroll department and LOs.
If there was ever a case to be made for automation, this is it. By using an automated system designed specifically to track compensation, lenders can streamline their back-office operations while remaining both compliant and creative in terms of their overall compensation schemes--all of which enables lenders to remain competitive when attracting and retaining LO talent.
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Lori Brewer is the founder and president of LBA Ware, a leading provider of automated compensation management and system integration solutions for the mortgage industry. She can be reached at email@example.com.