What is required to be disclosed to the borrower under the Federal Reserve Loan Originator Compensation Rule?

The requirement to disclose loan terms and conditions to the borrower under the Federal Reserve Loan Originator Compensation Rule is essential for ensuring transparency and informed decision-making. This regulation emphasizes that borrowers should be aware of the terms associated with their loans, including interest rates, repayment schedules, and any other relevant conditions that could affect their financial obligations.

Providing this information helps borrowers fully understand the implications of their mortgage agreement and allows for a more informed choice regarding their financial options. It also aligns with the broader aim of the rule, which is to eliminate conflicts of interest and promote fair practices within the mortgage industry.

In contrast, while details such as loan costs, the consumer's credit score, and the impact of steering on compensation may be important, they do not encompass the broad range of terms and conditions that the borrower needs to be fully aware of to make informed financial decisions.