The definition of loan originator is very broad in the L.O. Comp Rule. And while the Rule seems to try to offer some flexibility for a manager to step in every once in a blue moon and have a conversation with a consumer, maybe while a loan officer is on vacation or to deal with an escalating complaint or something like that, the limit is very small. It’s ten per year. Just about any communication with a consumer about a loan is likely to fall within that broad definition, so really I think the job description is really important as well. The limit of ten is really to allow you to have what is really a non-producing manager, somebody that doesn’t have their own book of business, that doesn’t hold themselves out as an originator, and is just purely a business manager of a mortgage company. It’s just to make sure that they don’t accidentally get dragged into the LO Compensation Rule on their compensation, because they really aren’t dealing with consumers. If you’re pressing to try and keep somebody from having ten, because they actually do hold themselves out, it doesn’t matter. You’re holding yourself out as an originator, your name is out there, you’re going to be viewed as an originator. Each one of those situations needs to be examined individually but my advice is, if you’ve got somebody that you’re trying to push them below ten, you’re going to have a hard time doing it.
Answered By: Brian Levy