On February 15, 2013, the Office of the Federal Register published the Consumer Financial Protection Bureau’s ("CFPB") final rule on loan originator compensation requirements under the Truth in Lending Act (Regulation Z). Because consumers rely so heavily on loan originators, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) provided new requirements for industry compensation practice, loan originator qualification, arbitration agreements, and the financing of insurance with a mortgage loan. The CFPB's new rule implements the Dodd-Frank requirements by revising and amending Regulation Z to keep loan originators from steering borrowers towards highcost and risky loans. The final rule is effective January 10, 2014, although two provisions are effective June 1, 2013.

The final rule contains four primary elements:

- Loan originators cannot receive compensation based on the terms or proxy terms of the transaction.

- Loan originators cannot receive compensation from both the consumer and the creditor.

- Loan originators must meet specific qualification and identification requirements.

- Consumers may still pay upfront points and fees.