Dually Licensed Michelle
Dually LicensedForum Replies Created
-
In Tennessee, like in other states, compensation for mortgage brokers and lenders can be complex, and there are regulations governing both borrower-paid and lender-paid compensation. Here’s a breakdown of how these compensations typically work and any specific rules that may apply in Tennessee:
Borrower-Paid Compensation
Borrower-Paid Compensation (BPC): This is the fee paid directly by the borrower to the mortgage broker. It is often a fixed percentage of the loan amount and must be disclosed upfront.
Federal Regulations: According to the Dodd-Frank Act, mortgage broker compensation cannot vary based on loan terms other than the principal loan amount. This means the compensation must be based on a set percentage, not the interest rate or other loan features.
Tennessee-Specific Rules:
Cap on BPC: No explicit state law in Tennessee caps borrower-paid compensation at 2%. However, broker compensation is subject to federal regulations, which generally enforce a cap to ensure compensation structures do not create incentives for steering borrowers into less favorable loan terms.
Lender-Paid Compensation
Lender-Paid Compensation (LPC): This is paid by the lender to the broker and is included in the interest rate or fees charged to the borrower.
Common Practice: It is common for LPC to be capped at around 2.75% of the loan amount, but this can vary based on lender policies and market conditions.
Comparing BPC and LPC
Lender-Paid Compensation: Typically, lender-paid compensation can be higher (up to around 2.75%) because it is built into the interest rate, and the borrower indirectly pays for it over the life of the loan.
Borrower-Paid Compensation: This is often lower because it is a direct fee paid at closing, making it more transparent and immediate for the borrower.
Industry Practices
Common Percentages: In practice, many lenders and brokers may have a typical range for BPC and LPC. The exact percentages can depend on various factors, including market conditions, lender policies, and the specifics of the loan transaction.
Legal and Compliance Considerations
Truth in Lending Act (TILA): Under TILA and its implementing regulations (Regulation Z), both borrower-paid and lender-paid compensation must be disclosed to the borrower.
Anti-Steering Provisions: These provisions ensure that brokers cannot receive higher compensation for steering borrowers into higher-cost loans, thus protecting consumer interests. While Tennessee does not specifically cap borrower-paid compensation at 2%, federal regulations and market practices typically govern these compensations. Mortgage brokers and borrowers must understand these rules to ensure compliance and transparency. For the most accurate and detailed information, it is recommended that they consult with a mortgage compliance expert or legal advisor. You can check resources from the Consumer Financial Protection Bureau (CFPB) or the Tennessee Department of Financial Institutions for further reading and verification.
-
Another prankster joke.
https://www.facebook.com/share/r/m9t2gQJJonN2kTYy/?mibextid=D5vuiz
facebook.com
This man harvey🤦♂️ YT damii #damii #publicprank #public #fyp #viral | By Zippity ZapFacebook
This man harvey🤦♂️ YT damii #damii #publicprank #public #fyp #viral
-
I love Florida.
-
Hate to say this about Kamala Harris but I think the country is better off with Joe Biden versus this dingbat Kamala Harris. Is she acting this dumb or is she brains 🧠 dead?
https://www.facebook.com/share/v/eKWg6sUD9LVqAB3P/?mibextid=21zICX
facebook.com
Kamala Harris has been branded "dangerously dumb" online after the US Vice President announced a national strategy to combat "Islamophobia".
-
Gus has been singing a dog and dance about silver since 2019 when silver was $26 to $28 per ounce. Everyone was into bit coins. However, if you really think with common sense in mind, it makes all the sense in the world. Take these thoughts into consideration:
The dollar, is it backed by anything? Can you print silver? Dollar is getting diluted and silver is not. I am now a believer silver will surpass $1,000 per ounce.
-
Peter, what’s your take on this. Is this big news and what impact does it have in your mind thinking from a point of an observer. Is this a done deal.
-
I think police reform is making progress. Years ago police officers charging other cops was unheard of. Cops who arrested cops were forced out of the police department or fired. Professional courtesy was extended in almost all cases and any cop accusing other cops of misconduct were considered a rat and were blacklisted from not just their own law enforcement agency but in all police agencies where their careers were over.
-
The U.S. dollar needs to be backed by silver and gold.
-
A classic song by Davey Jones