15 U.S.C. §1639b — Residential mortgage loan origination

tila-15usc-1639b

TILA's residential mortgage loan origination standards section (Dodd-Frank §1402-1405). Establishes mortgage originator duty of care including licensing/registration and unique-identifier disclosure on loan documents, the prohibition on steering incentives and LO-comp-varying-by-loan-terms rule, and the restructuring of origination-fee rule. Implemented in Regulation Z primarily at 12 CFR §1026.36. Bootstrap target for Round C promotion; obligations populated from candidate file.

Get this register: .xlsx .csv More bundles →

source:
  type: regulation
  id: tila-15usc-1639b
  authority: 15 U.S.C. §1639b — Residential mortgage loan origination
  description: |
    TILA's residential mortgage loan origination standards section
    (Dodd-Frank §1402-1405). Establishes mortgage originator duty of
    care including licensing/registration and unique-identifier
    disclosure on loan documents, the prohibition on steering
    incentives and LO-comp-varying-by-loan-terms rule, and the
    restructuring of origination-fee rule. Implemented in
    Regulation Z primarily at 12 CFR §1026.36. Bootstrap target for
    Round C promotion; obligations populated from candidate file.
obligations:
  - id: tila-15usc-1639b-b1a-qualified-registered-licensed-originator
    canonical_id: tila-15usc-1639b-b1a-qualified-registered-licensed-originator
    section: 15 U.S.C. §1639b(b)(1)(A) — Mortgage originator qualification, registration, and licensing
    description: |
      [LENDER], when acting as (or employing) a mortgage originator, shall
      ensure that each mortgage originator is qualified and, when required,
      registered and licensed as a mortgage originator in accordance with
      applicable State or Federal law, including the Secure and Fair
      Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. 5101
      et seq.). This is the statutory licensing duty that the SAFE Act
      operationalizes through NMLS registration/licensing and that
      Regulation Z §1026.36(f) carries through as a creditor duty to
      qualify, register, and license loan originators.
    type: do
    audit_question: For every mortgage originator that [LENDER] employs or engages, can [LENDER] evidence that the originator is qualified and (where required) registered or licensed under the SAFE Act / applicable State or Federal law at the time of each origination, in compliance with 15 U.S.C. §1639b(b)(1)(A)?
    program_review: Do the P&Ps ensure each mortgage originator the lender employs or engages is qualified and, when required, registered and licensed under the SAFE Act / applicable State or Federal law at the time of each origination?
    file_review: Pull originator files; confirm qualification and (where required) SAFE-Act registration/licensing in effect at the time of each origination.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: compliance_officer
    secondary_owner_role: loan_officer
    cadence: per-mortgage-originator
    consequence: ''
    tags:
      - round-c
      - regulator-direct
      - tila
      - safe-act
      - mlo-qualification
      - origination
      - promoted
    primary_source:
      tier: 1
      authority: 15 U.S.C. §1639b(b)(1)(A)
      source_class: tila-statute
      source_url: https://www.law.cornell.edu/uscode/text/15/1639b
      snapshot_id: 727d72e516e659f1
      fetched_at: '2026-05-24T16:52:21Z'
      content_hash: sha256:1510bafe13cd0412975e6d12670f4deac587079349d0621e91bb436c6eed13cb
      paragraph_quote: be qualified and, when required, registered and licensed as a mortgage originator in accordance with applicable State or Federal law, including the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 [ 12 U.S.C. 5101 et seq.]; and
      drafter_attestation: |
        Copied verbatim from snapshot 727d72e516e659f1 (content.txt) at
        2026-05-24T18:00Z. Substring is the §1639b(b)(1)(A) operative
        clause; the (b)(1) chapeau ("each mortgage originator shall...")
        is paraphrased into the description.
    sub_criteria:
      - id: tila-15usc-1639b-b1a-qualified
        description: Each mortgage originator is qualified to originate residential mortgages
        derivation_kind: from-regulatory-text
        cite: 15 U.S.C. §1639b(b)(1)(A) clause 1
        evidence_kinds:
          - mlo_qualification_record
          - hr_credential_file
      - id: tila-15usc-1639b-b1a-registered-or-licensed
        description: Each mortgage originator is registered or licensed as required by SAFE Act / applicable State or Federal law
        derivation_kind: from-regulatory-text
        cite: 15 U.S.C. §1639b(b)(1)(A) clause 2
        evidence_kinds:
          - nmls_registration_record
          - state_mlo_license
          - federal_registered_mlo_record
    promoted_at: '2026-05-24T20:12:23+00:00'
    promoted_from: tila-15usc-1639b-roundc-v1.yaml
  - id: tila-15usc-1639b-b1b-nmls-unique-identifier-on-loan-documents
    canonical_id: tila-15usc-1639b-b1b-nmls-unique-identifier-on-loan-documents
    section: 15 U.S.C. §1639b(b)(1)(B) — NMLS unique identifier on all loan documents
    description: |
      [LENDER] shall include on all loan documents any unique identifier
      of the mortgage originator provided by the Nationwide Mortgage
      Licensing System and Registry. This is the statutory NMLS-ID
      disclosure duty that Regulation Z §1026.36(g) operationalizes
      (loan originator identifier requirement on the credit application,
      note, and security instrument).
    type: do
    audit_question: For every residential mortgage loan originated by [LENDER], can [LENDER] evidence that the NMLS unique identifier of the originating mortgage originator appears on all loan documents (application, note, security instrument, and credit-decision documents) per 15 U.S.C. §1639b(b)(1)(B)?
    program_review: Do the P&Ps ensure the originating mortgage originator's NMLS unique identifier appears on all loan documents (application, note, security instrument, credit-decision documents)?
    file_review: Pull loan documents; confirm the originator's NMLS unique identifier appears on all of them.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: compliance_officer
    secondary_owner_role: loan_officer
    cadence: per-loan
    consequence: ''
    tags:
      - round-c
      - regulator-direct
      - tila
      - nmls
      - safe-act
      - mlo-identifier
      - origination
      - promoted
    primary_source:
      tier: 1
      authority: 15 U.S.C. §1639b(b)(1)(B)
      source_class: tila-statute
      source_url: https://www.law.cornell.edu/uscode/text/15/1639b
      snapshot_id: 727d72e516e659f1
      fetched_at: '2026-05-24T16:52:21Z'
      content_hash: sha256:1510bafe13cd0412975e6d12670f4deac587079349d0621e91bb436c6eed13cb
      paragraph_quote: include on all loan documents any unique identifier of the mortgage originator provided by the Nationwide Mortgage Licensing System and Registry.
      drafter_attestation: |
        Copied verbatim from snapshot 727d72e516e659f1 (content.txt) at
        2026-05-24T18:00Z. Substring is the §1639b(b)(1)(B) operative
        clause.
    promoted_at: '2026-05-24T20:12:23+00:00'
    promoted_from: tila-15usc-1639b-roundc-v1.yaml
  - id: tila-15usc-1639b-c1-no-compensation-varying-by-loan-terms
    canonical_id: tila-15usc-1639b-c1-no-compensation-varying-by-loan-terms
    section: '15 U.S.C. §1639b(c)(1) — Prohibition on steering incentives: compensation that varies based on loan terms'
    description: |
      For any residential mortgage loan, [LENDER] (and any mortgage
      originator) shall not receive from any person, and no person shall
      pay to a mortgage originator, directly or indirectly, compensation
      that varies based on the terms of the loan (other than the amount
      of the principal). This is the statutory LO-comp-varying-by-terms
      prohibition that Regulation Z §1026.36(d)(1) operationalizes.
    type: dont
    audit_question: For every residential mortgage loan originated by [LENDER], can [LENDER] evidence that no mortgage originator received (and no person paid a mortgage originator) directly or indirectly any compensation varying based on the terms of the loan other than the principal amount, per 15 U.S.C. §1639b(c)(1)?
    program_review: Do the P&Ps ensure no mortgage originator receives, and no person pays an originator, directly or indirectly, compensation that varies based on the terms of the loan (other than the principal amount), for any residential mortgage loan?
    file_review: Review originator compensation; the compliance person judges whether any component varies based on a loan term other than the principal amount.
    judgment: true
    feeds: []
    workflow_phase: origination
    owner_role: compliance_officer
    secondary_owner_role: loan_officer
    cadence: per-loan
    consequence: ''
    tags:
      - round-c
      - regulator-direct
      - tila
      - lo-comp
      - anti-steering
      - dodd-frank
      - origination
      - promoted
    primary_source:
      tier: 1
      authority: 15 U.S.C. §1639b(c)(1)
      source_class: tila-statute
      source_url: https://www.law.cornell.edu/uscode/text/15/1639b
      snapshot_id: 727d72e516e659f1
      fetched_at: '2026-05-24T16:52:21Z'
      content_hash: sha256:1510bafe13cd0412975e6d12670f4deac587079349d0621e91bb436c6eed13cb
      paragraph_quote: For any residential mortgage loan, no mortgage originator shall receive from any person and no person shall pay to a mortgage originator, directly or indirectly, compensation that varies based on the terms of the loan (other than the amount of the principal).
      drafter_attestation: |
        Copied verbatim from snapshot 727d72e516e659f1 (content.txt) at
        2026-05-24T18:00Z. Substring is the full §1639b(c)(1) operative
        prohibition.
    promoted_at: '2026-05-24T20:12:23+00:00'
    promoted_from: tila-15usc-1639b-roundc-v1.yaml
  - id: tila-15usc-1639b-c2a-restriction-on-origination-fee-from-non-consumer
    canonical_id: tila-15usc-1639b-c2a-restriction-on-origination-fee-from-non-consumer
    section: '15 U.S.C. §1639b(c)(2)(A) — Restructuring of financing origination fee: dual-compensation prohibition'
    description: |
      For any mortgage loan, [LENDER]'s mortgage originator may not
      receive from any person other than the consumer — and no person
      other than the consumer who knows or has reason to know that a
      consumer has directly compensated or will directly compensate a
      mortgage originator may pay a mortgage originator — any origination
      fee or charge, except bona fide third-party charges not retained by
      the creditor, mortgage originator, or an affiliate of the creditor
      or mortgage originator. This is the statutory dual-compensation
      prohibition that Regulation Z §1026.36(d)(2) operationalizes.
      The §1639b(c)(2)(B) safe-harbor exception (no consumer compensation
      AND no upfront points/origination/fees by consumer) is paraphrased
      in audit_question.
    type: dont
    audit_question: For every mortgage loan originated by [LENDER], can [LENDER] evidence that the mortgage originator did not receive an origination fee or charge from any person other than the consumer (and that no non-consumer who knew of consumer direct compensation paid the originator), except for bona fide third-party charges not retained by creditor/originator/affiliate — OR that the §1639b(c)(2)(B) safe-harbor conditions (no consumer direct comp AND no upfront discount points/origination points/fees from consumer) were satisfied?
    program_review: Does the overall program account for the dual-compensation prohibition and its safe harbor — ensuring the originator receives no origination fee/charge from any person other than the consumer (and no non-consumer who knows of consumer direct compensation pays the originator), except bona fide third-party charges not retained by creditor/originator/affiliate, OR that the §1639b(c)(2)(B) safe-harbor conditions (no consumer direct comp AND no consumer upfront discount/origination points or fees) are met?
    file_review: Pull mortgage-loan files; confirm the originator received no prohibited non-consumer origination fee (or that the (c)(2)(B) safe-harbor conditions were satisfied), with any bona fide third-party charges not retained by creditor/originator/affiliate.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: compliance_officer
    secondary_owner_role: loan_officer
    cadence: per-loan
    consequence: ''
    tags:
      - round-c
      - regulator-direct
      - tila
      - lo-comp
      - dual-compensation
      - dodd-frank
      - origination
      - promoted
    primary_source:
      tier: 1
      authority: 15 U.S.C. §1639b(c)(2)(A)
      source_class: tila-statute
      source_url: https://www.law.cornell.edu/uscode/text/15/1639b
      snapshot_id: 727d72e516e659f1
      fetched_at: '2026-05-24T16:52:21Z'
      content_hash: sha256:1510bafe13cd0412975e6d12670f4deac587079349d0621e91bb436c6eed13cb
      paragraph_quote: For any mortgage loan, a mortgage originator may not receive from any person other than the consumer and no person, other than the consumer, who knows or has reason to know that a consumer has directly compensated or will directly compensate a mortgage originator may pay a mortgage originator any origination fee or charge except bona fide third party charges not retained by the creditor , mortgage originator, or an affiliate of the creditor or mortgage originator.
      drafter_attestation: |
        Copied verbatim from snapshot 727d72e516e659f1 (content.txt) at
        2026-05-24T18:00Z. Substring is the full §1639b(c)(2)(A)
        operative prohibition; (c)(2)(B) safe-harbor conditions are
        paraphrased in description and audit_question.
    promoted_at: '2026-05-24T20:12:23+00:00'
    promoted_from: tila-15usc-1639b-roundc-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-24T20:12:23+00:00'
    candidate_path: obligations\_remediation\round-c-type-a\tila-15usc-1639b-roundc-v1.yaml
    candidates_promoted: 4
    candidates_skipped_existing: 0

Verbatim regulatory text (4)

Verbatim provisions from 15 U.S.C. §1639b — Residential mortgage loan origination — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

15 U.S.C. §1639b(b)(1)(A) — Mortgage originator qualification, registration, and licensing

be qualified and, when required, registered and licensed as a mortgage originator in accordance with applicable State or Federal law, including the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 [ 12 U.S.C. 5101 et seq.]; and

Source: 15 U.S.C. §1639b(b)(1)(A) · source URL · snapshot 727d72e516e659f1

15 U.S.C. §1639b(b)(1)(B) — NMLS unique identifier on all loan documents

include on all loan documents any unique identifier of the mortgage originator provided by the Nationwide Mortgage Licensing System and Registry.

Source: 15 U.S.C. §1639b(b)(1)(B) · source URL · snapshot 727d72e516e659f1

15 U.S.C. §1639b(c)(1) — Prohibition on steering incentives: compensation that varies based on loan terms

For any residential mortgage loan, no mortgage originator shall receive from any person and no person shall pay to a mortgage originator, directly or indirectly, compensation that varies based on the terms of the loan (other than the amount of the principal).

Source: 15 U.S.C. §1639b(c)(1) · source URL · snapshot 727d72e516e659f1

15 U.S.C. §1639b(c)(2)(A) — Restructuring of financing origination fee: dual-compensation prohibition

For any mortgage loan, a mortgage originator may not receive from any person other than the consumer and no person, other than the consumer, who knows or has reason to know that a consumer has directly compensated or will directly compensate a mortgage originator may pay a mortgage originator any origination fee or charge except bona fide third party charges not retained by the creditor , mortgage originator, or an affiliate of the creditor or mortgage originator.

Source: 15 U.S.C. §1639b(c)(2)(A) · source URL · snapshot 727d72e516e659f1