The Community Home Lenders of America (CHLA) is proposing that the U.S. Congress scale back the loan originator compensation rule to its original intent: prohibiting yield spread premiums, an abusive practice from the 2008 financial crisis in which lenders paid brokers more to steer borrowers into higher-rate loans.

The proposal comes as the Consumer Financial Protection Bureau (CFPB) submitted a list of rules to the Office of Management and Budget (OMB) for review in early June. Among them are potential changes to LO compensation requirements and mortgage servicing rules under the Truth in details ⇒

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