Rule 1301:8-7-20 | Compensation.
(A) Compensation of any kind paid to a licensee employed by or associated with a registrant or qualified exempt entity shall be:
(1) Paid by check or electronic draft;
(2) Paid from the account of the registrant or qualified exempt entity, or account of a third party payroll administrator acting as the registrant's or qualified exempt entity's agent; and
(3) Paid or made payable to the licensee in the licensee's legal name.
(B) A registrant or qualified exempt entity may compensate a licensee or former licensee in accordance with paragraph (A) of this rule after the expiration, cancellation, surrender, or transfer of the individual's license only for those origination activities performed while the individual was sponsored by the registrant or qualified exempt entity via the NMLS, provided the registrant or qualified exempt entity shall document to the superintendent's satisfaction that such compensation was for origination activities occurring during such sponsorship.
(C) A registrant or qualified exempt entity shall not pay compensation of any kind to a loan processor or to any individual in a manner designed to circumvent the licensing requirement of division (B)(1) of section 1322.02 of the Revised Code.
(D) Registrants, qualified exempt entities, and licensees shall comply with the loan originator compensation regulations set forth in 12 C.F.R. part 1026, as in effect on May 1, 2024.
Last updated September 3, 2024 at 8:48 AM
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