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Which MLO compensation plan complies with Reg Z Section 1026.36?

Federal Mortgage Law · 24% of the SAFE exammedium

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Correct answer: 0.75% on all loans regardless of rate, product type, or loan amount

A compliant comp plan pays the SAME percentage on every loan regardless of terms — rate, product type, APR, or any other loan condition. "1.0% on loans under $300K, 0.75% on loans $300K-$500..." varies by loan amount (permitted as an exception, but the declining scale shown actually disincentivizes larger loans — risky structure). "0.75% on loans with APR below 5.5%, 0.95% on loans a..." varies by PRODUCT TYPE (FHA vs. conventional) — prohibited. "0.75% on all conventional loans, 0.85% on all FHA loans" varies by APR — prohibited. "0.75% on all loans regardless of rate, product type,..." is the safe harbor: uniform percentage, no variation by terms. Note: loan amount variation IS permitted, but must not serve as a proxy for other prohibited factors.

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