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At Condley and Company, LLP, we focus on keeping our clients and friends informed of the latest tax and accounting changes. Our team recently received the following information regarding adjustments to the calculation of year-end bonuses. We encourage you to read the information and contact our office with any questions or concerns you may have. You can reach a member of our Banking Services team by calling (325) 677-6251.
“If your calculation of year-end bonuses paid to your Mortgage Loan Originators includes income from mortgage loans in any way, shape or form, they may violate anti-steering rules in Regulation Z (12 CFR §226.36). THIS INCLUDES BONUSES BASED ON INCOME OR PROFITABILITY THAT INCLUDE MORTGAGE PROFITS. This week, IBAT received reports that the FDIC examiners are interpreting these anti-steering provisions very broadly. Follow-up with the Consumer Financial Protection Bureau by IBAT General Counsel Karen Neeley confirmed that the CFPB agrees with the reports we received regarding the FDIC.
Click here to read a memo explaining the issue and offering some possible solutions.
While IBAT respectfully disagrees with this interpretation and will work to reverse it, unless and until we can convince the agencies to narrow their interpretation, bonuses will need to comply. We would like to thank Kelly Earls of Bank Compensation Consulting for bringing this important and urgent issue to our attention.”
Other articles in the December 2011 Edition of The Bank Beat:
Social Media Risk Management
Chip Cards Gain Momentum