Under which law was the Mortgage Loan Originator Compensation Rule first drafted?

The Mortgage Loan Originator Compensation Rule was first drafted under the Dodd-Frank Act. This legislation, enacted in response to the 2008 financial crisis, included several provisions aimed at reforming the financial industry and enhancing consumer protection in the mortgage market. One of the key objectives of the Dodd-Frank Act was to address the compensation structures of mortgage loan originators, aiming to eliminate conflicts of interest that could lead to predatory lending practices.

This specific rule was implemented to ensure that mortgage loan originators are compensated based on the services they provide rather than on the interest rate or other factors that could incentivize them to act against the best interests of the consumer. The Dodd-Frank Act established the framework for this regulation, which emphasizes transparency and fairness in mortgage lending practices.