Have you ever been to a chiropractor? You know, where there’s something out of alignment, you describe it to them, and then they work their magic? Here’s a chiropractor of a different sort with a different kind of patient. Today I head to Boise where there are 43 chiropractors. Okay, I made that figure up. Here’s something that’s not made up: originator comp. Yesterday afternoon’s Commentary mentioned the shift in regional manager’s pay to more profit-based rather than strictly volume and raised the issue of paying loan originators based on profits rather than in basis points of production. The note prompted this reminder from attorney Brian Levy. “No. As much as that makes sense from a business perspective, it’s illegal to pay LOs on profits under TILA’s LO Comp Rule. There are other things a lender can do that are permissible, but the whole gist of the LO Comp Rule was to prevent LOs from being paid on individual loan profitability.” (Today’s Commentary podcast can be found here and this week’s is sponsored by Lender Toolkit and its AI-powered AI Underwriter and Prism borrower income automation tools. By providing lightning-fast underwriting decisions, your market reputation with borrowers and Realtors will soar, which means more repeat and referral business. Hear an interview with PHH’s Sabrina Dean-Bass on why a commercial/business purpose loan servicer matters.) Lender and Broker Services, Products, and Software “Are you trying to gain an edge in pricing and predicting cash flows? Start by better understanding the value of your servicing portfolio. Although valuing servicing is a key responsibility in secondary marketing, the process isn’t always straightforward. And if you’re still using grids to value servicing assets, you could be compromising transparency, profitability, and efficiency. Fortunately, Optimal Blue offers a better way to manage the opaque MSR asset, and we’d love to tell you more during the MBA Servicing Solutions Conference in Orlando. Steve Baselice, capital markets solutions specialist, will be on-site at the Optimal Blue booth and ready to lend his decades of expertise to your business needs. Additionally, plan to attend the Tech Showcase session, which will include an overview of Optimal Blue’s technology, presented by Mike Vough, VP of hedging and trading products. To learn more, contact us.”