Loan originators face compensation crackdown

New rules take aim at loan pricing, yield spread premiums

By Inman News Feed
Add Comment Add Comment | Comments: 0 | Posted Feb. 16, 2011

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Rules are badly crafted when they can be interpreted in highly divergent ways, some of which are favorable to borrowers and some of which would make their plight worse. In my view, the Fed should delay implementation until they get it right.

Thanks to Kevin Iverson for helpful comments.

The writer is professor of finance emeritus at the Wharton School of the University of Pennsylvania. Comments and questions can be left at

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