Its been awhile since I needed to go over this but now I am back and kind of lost. Currently our LOs are salaried and we are a retail/portfolio Bank.. Nothing is paid directly from the consumer or the Bank per loan to the LO and LOs have no say as to pricing. Due to COVID and a slow down in lending, the Bank is looking at offering incentive bonuses to our LOs for closed loan production. No terms will be permitted to be a part of the incentive plan, simply closing a loan is all that they need.
Where I get lost is this type of compensation is permitted, I believe we can offer bonus as part of tax incentive plan (401K) but can a loan officer in this case be directly compensated by the Bank up to 10%,. There is no lo compensation plan that includes bonus so would one have to be drawn up or would this general incentive plan be permitted,
Sorry, like I said, its been a while since I needed to revisit this part of TILA.