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#2085580 - 06/28/16 03:08 PM Credit Life/A& H - Fees to Loan Officers
OnTheEdge Offline
Diamond Poster
Joined: Apr 2002
Posts: 1,677
SmallTown, USA
Does TN law allow fees for the sale of credit life/A&H Insurance to be paid to loan officers (loans not secured by mortgages)? I know it did years ago. I never liked the idea. At my current bank we sell very little and those fees go directly to an income account.
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The opinions expressed are mine and do not necessarily reflect those of my employer.

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#2085609 - 06/28/16 04:01 PM Re: Credit Life/A& H - Fees to Loan Officers OnTheEdge
OnTheEdge Offline
Diamond Poster
Joined: Apr 2002
Posts: 1,677
SmallTown, USA
Well, here is what I found....TDFI Bulletin No. B-89-3....Employees and Officers may participate in a bonus or incentive plan under which payments based on credit life insurance sales are made not more frequently than quarterly and not exceeding in any one year 5 percent of the recipient's annual salary.

TDFI Bulletin No. B-89-5...When credit life income is earned and does not go into the general earning of the bank, but instead to officials or employees of the bank or to companies owned by the bank holding company or officers, then this Department will have no objection so long as the full details of this income distribution are disclosed to the shareholders on at least an annual basis.

This is info is really old, so if anyone is aware of anything more current, pleas let me know.
_________________________
The opinions expressed are mine and do not necessarily reflect those of my employer.

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#2085623 - 06/28/16 04:36 PM Re: Credit Life/A& H - Fees to Loan Officers OnTheEdge
MBTCompliance Offline
Gold Star
Joined: Apr 2015
Posts: 346
TDFI Bulletin No. B-89-3....Employees and Officers may participate in a bonus or incentive plan under which payments based on credit life insurance sales are made not more frequently than quarterly and not exceeding in any one year 5 percent of the recipient's annual salary.

We still pay our loan officers according to this schedule.

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