A loan originator is paid a commission by the borrower directly on a transaction. On that same transaction, the originator also wants to collect a commission from the lender. What does the LO Compensation Rule say about this?

Explanation

Reg Z 1026.36 generally bans dual compensation: if a loan originator receives compensation directly from the consumer, no other person may pay the originator on that transaction, and vice versa. Disclosure or consent does not cure the violation. The rule prevents a borrower from unknowingly paying twice.