Under what circumstances can MLOs receive commission?

Receiving commission as a Mortgage Loan Originator (MLO) is contingent upon successfully closing a loan after all required disclosures are made to the borrower. This stipulation is critical because it ensures that the MLO not only meets legal and regulatory requirements but also promotes transparency and informed decision-making for the borrower. The act of fulfilling all necessary disclosures before closing a loan protects the interests of both the borrower and the lender, and it's a fundamental aspect of the mortgage lending process, demonstrating compliance with the laws and regulations governing MLOs.

Closing a loan implies that all documentation is complete and that the borrower has had the chance to review and understand the terms of the loan, which is essential for earning a commission. This ensures that MLOs are incentivized to follow through with ethical practices throughout the loan process.

In contrast, other situations, such as working specifically for a bank, loan payoff scenarios, or borrower credit scores, do not determine MLO commission eligibility. Commission structure is primarily linked to the successful closure of loans rather than the MLO's employer or the borrower's financial standing.