Spotlight Back on LO Comp and Potential Penalties

Daniel Podesto wrote in: ``"Regarding LO comp, I agree with the idea of forcing the loan officer to agree to a price for their service and not deviate from that price. Specifically, any improvement in prices throughout the loan process due to market movement (YSP) should be passed on to the consumer.  And once again, the regulators missed the boat by not requiring the same rules for the banks and mortgage bankers. These companies still capture YSP and pay it to their LOs as a "bonus" thanks to a loophole in the law.  I already said an agreed-upon price is good, but I don't agree with one-size-fits-all price-fixing mentality for every loan.  Loan officers across the board have set their margins higher than pre-LO comp to ensure never making too little, and now use the excuse that 'the government fixed my compensation' whenever compensation is called into question.''