Description

Explains the rules and guidance surrounding the referral of business, including limits on amounts and types of referral compensation. Describes the Regulation R provisions that address referral compensation applicable to bank employees who refer customers to broker-dealers. Describes Regulation Z’s Loan Originator Compensation rules that address the limited circumstances when a bank employee who is not a loan originator may make a referral. (NOTE: This course does not cover referral and compensation rules under Section 8 of RESPA.)

What You’ll Learn

After completing this course, students will be able to:

Explain when tellers and other employees may be compensated for referrals related to non-deposit investment products, as well as any limitations on those fees
Describe the type of information someone may convey to consumers about dwelling-secured loans without the employee becoming a loan originator who is subject to certain criminal background checks, compensation limitations, and other rules