An MLO is prohibited from receiving compensation from both the lender and the borrower on the same transaction. This restriction is established by which regulation?

Correct answer: Regulation Z's Loan Originator Compensation Rule

Regulation Z's Loan Originator Compensation Rule (12 CFR 1026.36) specifically prohibits dual compensation — an MLO cannot receive compensation from both the consumer and the lender (or another party) in the same transaction. This prevents conflicts of interest. RESPA Section 8 ("," prohibits kickbacks and unearned fees but does not specifically address dual MLO compensation. The SAFE Act ("s Loan Originator Compensation Rule" governs licensing. HMDA ("HMDA Regulation C" governs data collection and reporting.