CFPG creates incentives for consumers to pay brokers fees.

According to National Mortgage News, the compensation paid by the creditor to a mortgage brokerage firm should be included in the 3% cap under the qualified mortgage rule. In addition, any origination fee paid by the consumer to the creditor must be accounted towards the 3% cap. The CFPB said that this CAP ensures that lenders offering qualified mortgages do not charge excessive points and fees.

However the CFPB said that creditor may reduce the cost it needs to recover from origination by having the consumer pay the mortgage brokers directly. This rule comes into effect by Jan 10th, 2014. The final rule is that if the origination fees are included in the finance charge then, the origination fees paid by the consumers to the brokerage firm can be excluded. To read more click here.

PrivoCorp is a licensed mortgage processor in several states in the US.