CLO receives a referral fee of $100. Because the CLO is also a loan originator and the bulk of their compensation comes in the way of bonuses, is his total compensations subject to the 10% rule, even though he only received a referral fee for the loan?
He is a loan originator because he received a referral fee for soliciting the mortgage loan and referring it to the mortgage department. Any bonuses based on profitability would be limited to 10% of his overall compensation, unless he met the de minimis of 10 or fewer covered loan originator activities. So if his only Reg Z covered loan originator activity is soliciting referrals and he did not solicit more than 10 referrals that resulted in an origination, the bonus would not be limited. In order to invoke the de minimis, you will need to set up some sort of tracking system to prove that the bonus is not limited because the LO met the de minimis test.