Finance
Under Dodd-Frank, lenders are prohibited from incentivizing loan officers with compensation based on:
AThe number of loans originated
BLoan terms (e.g., higher compensation for steering borrowers to higher-rate loans)✓ Correct
CThe quality of borrower's credit scores
DThe type of property purchased
Explanation
Dodd-Frank's loan originator compensation rule prohibits lenders from compensating loan officers based on the terms of the loans they originate (e.g., interest rate, points), to prevent steering borrowers into unnecessarily costly loans.
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