What is the maximum amount of compensation an MLO can receive on a loan under TRID regulations?

The correct answer is that there is no specific maximum amount of compensation an MLO can receive under TRID regulations, but it must be disclosed appropriately. TRID, which stands for TILA-RESPA Integrated Disclosure, outlines the requirements for disclosures related to mortgage loans, but it does not impose a cap on the amount of compensation that mortgage loan originators can earn.

Instead, it focuses on ensuring transparency and requiring that lenders provide clear and accurate disclosures to borrowers regarding the costs associated with the loan, including the fees and compensation for the MLO. This means that while there's flexibility in how much MLOs can earn, this compensation must still be accurately reflected in the Loan Estimate and Closing Disclosure documents to aid borrowers in understanding the costs of their loan.

This emphasis on appropriate disclosure is critical because it promotes accountability and protects consumers by providing them with the necessary information to make informed decisions about their mortgage loans.