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Consumer Law

: CL&P Blog

Mortgage broker compensation

By Alan White

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The incentives created by mortgage broker compensation structures, such as yield spread premiums, have been blamed for contributing to the reckless lending in the subprime mortgage market. The Treasury Department and Federal Reserve proposals, as well as various bills in Congress, are all taking aim at broker compensation and supervision. To find out what is going on in the market right now, check out this interesting discussion among brokers over at the Implode-o-Meter about Countrywide's decision, announced yesterday, to limit total broker compensation to 4% of loan amounts.

Full post as published by CL&P Blog on April 01, 2008 (boomark / email).

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