GSF Funding Says Finance Reform Bill Still Allows Fair Compensation for all Mortgage Originators

by 17 Jul 2010
BROOKFIELD, Wis., June 23, 2010 ? Mortgage bankers don?t necessarily need to be concerned about losing compensation if the Restoring American Financial Stability Act becomes law, according to GSF Funding, a Brookfield, Wis.-based mortgage banking company. The Senate passed S. 3217 on May 20 after adopting an amendment that would prohibit mortgage originator pricing discretion or incentive payments based on the interest rate or loan type. The bill is now in an informal joint conference, where members of both chambers will work to reconcile it with H.R. 4173?the Wall Street Reform and Consumer Protection Act of 2009?passed by the House in December. S. 3217 allows for compensation of mortgage originators at organizations like GSF Funding based on the principal amount of the loan, and loan originators also may be paid through the rate if there isn?t an upfront payment of discount points, origination points, or similar fees other than third-party settlement charges. Further, originators may receive compensation when a consummated loan is sold to a subsequent purchaser, or based on the number of loans originated within a specific time period. The bill prohibits direct and indirect originator compensation, such as yield spread premiums and overages, based on loan terms. GSF Funding says the organizational structure of the loan originator is a determining factor in how the bill, if enacted, would affect the compensation of mortgage professionals. ?By affiliating as a mortgage originator with an organization that has flexibility like GSF Funding, mortgage originators will have more flexibility when it comes to compensation,? explained Michael Maida, National Director of Sales. ?And whether or not the bill becomes law, the GSF branch partnership business model offers tremendous advantages in today?s market, such as compliance support and other valuable services.? For more information about GSF Funding and its partnership opportunities, please call 877-494-4448 or email About GSF Funding Headquartered in Brookfield, Wis., GSF Funding is a multi-state mortgage banker conducting business in Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, North Dakota, Pennsylvania, South Dakota, Texas, Virginia, Washington D.C., West Virginia and Wisconsin. Founded in 1995, GSF has established a reputation for excellence and competitive pricing in its mortgage lending and brokering. The company works in partnership with investors who share the company?s commitment to the highest standards of customer service and integrity, providing the products and services that are critical to their business. GSF takes pride in the extensive measures it has taken to monitor the accuracy of its lending files and has a comprehensive quality control plan. The organization has been recognized as Professional of the Year by the Wisconsin Mortgage Professionals Association and is a member of the Wisconsin Better Business Bureau.



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