Federal Mortgage Law · 24% of the SAFE exammedium
Correct answer: No — compensation is based on APR, which is a loan term, regardless of the size of the variance
This is NON-COMPLIANT. Tying compensation to APR is prohibited because APR is a loan term under Reg Z 1026.36. The size of the variance is irrelevant — even a 0.01% difference based on APR violates the rule. Disclosure does not cure the violation. And APR IS a loan term (it's the annualized cost of credit). The rule is absolute: compensation cannot vary based on ANY loan term except loan amount. There is no de minimis exception.
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