EthicsQuestion 308 of 400
On a single transaction, a loan originator generally may receive compensation from:
a.Both the consumer and the creditor at the same time
b.Whichever party pays more
c.Either the consumer or the creditor, but not both on the same transaction
d.Only the title company
Explanation
The dual-compensation prohibition means an originator generally cannot be paid by both the consumer and the creditor on the same transaction; it must be one or the other. Choosing the higher payer or being paid by both violates the rule, and the title company is not the source of LO compensation.
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