Mortgage News Daily:Reg Z Violations Easily Enforced Under SAFE Act; Comp Plan Recruiting RushFrom Mortgage News Daily...April 1, 2011Reg Z Violations Easily Enforced Under SAFE Act; Comp Plan Recruiting Rush Today was/is the big day for many companies. If you're thinking about being devious, you may want to think twice. "The companies & loan officers that skirt around the comp Rule, will get caught. This was a well thought out and defined rule, from an enforcement perspective. Penalties are severe this time and easily enforced by every state that now has the power due to SAFE Act, to enforce Federal laws with state penalties. Competitors will turn them in. Not to mention that a comp plan violation is a TILA violation as well with now, individual liability on a loan by loan basis. Private right of action will be very painful to the LO that thought it was the "company's problem if they over pay me". This FRB Rule with compensation and QRM lines make the last 3 years of changes look like stability in this industry. Profound business model changes are in the works and will reverberate for the next 6-12 months like a Tsunami."Assuming the comp plans go ahead as planned, which is now open to debate, analysts are concerned that the mortgage origination business might experience significant turmoil as lenders are compelled to reconcile their just-released compensation programs in response to real world market conditions."PART 226--TRUTH IN LENDING (REGULATION Z)April 01 2011 - Brooklyn22YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.