Credit unions may now make contributions to qualified plans for loan originators out of a pool of profits derived from loans originated by employees, according to a new NCUA regulatory alert.
According to the regulator, the Consumer Financial Protection Bureau released informal guidance earlier this month that softened a position formerly held by the Federal Reserve Board, clarifying how it interprets loan originator compensation rules that apply to qualified plans under Truth in Lending.
According to the CFPB, the rules permit employers to contribute to qualified plans out of a profit pool derived from loan originations.
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