Straight Talk: TILA and compensation

      Changes to the Federal Reserve’s Regulation Z, or Truth in Lending Act, have the potential to drive many community banks out of the mortgage lending business. Under mandate of the Dodd-Frank Act, the Federal Reserve changed TILA to prohibit mortgage originators from accepting compensation based on terms or conditions of a loan. The new anti-steering rules went into effect last April and they are causing problems for banks that have institution-wide incentive compensation plans.

      It is easy to understand why Congress wanted to . . .

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