Mortgage Lo Comp Respa Design

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name: mortgage-lo-comp-respa-design
description: "Activate when: designing/reviewing loan-originator compensation; considering a marketing services agreement (MSA), lead-buy, or referral arrangement; 'can we pay for these referrals?', 'can comp vary by loan?'. Do NOT activate when: unrelated ops incentives with no mortgage-referral nexus. More: deciqai.com/s/mortgage-lo-comp-respa-design"
---

# Mortgage — LO Compensation & RESPA Guardrails

> **Industry front door for [incentive-design](../incentive-design/SKILL.md).** Adds domain triggers, example, packs only. Parent Process unchanged.
> **Not legal advice.** LO-comp and RESPA rules are strict-liability-adjacent; verify with counsel/compliance before designing any plan or arrangement.

**Activate when:** designing/reviewing loan-originator compensation; considering a marketing services agreement (MSA), lead-buy, or referral arrangement; "can we pay for these referrals?", "can comp vary by loan?"
**Do NOT activate when:** unrelated ops incentives with no mortgage-referral nexus.

## Why this variant
The parent [incentive-design](../incentive-design/SKILL.md) aligns incentives while avoiding perverse behavior. In mortgage, incentive design is **legally constrained**: the LO Comp Rule bars pay tied to loan *terms*, and RESPA Section 8 bars paying for referrals. Design must produce alignment *inside* these hard limits.

## Domain inputs → parent's Process
- LO comp may **not** vary by interest rate or loan terms (proxy analysis); may vary by permissible factors (volume, loan amount within limits, etc.).
- RESPA §8: no fee/thing-of-value for the referral of settlement business; MSAs must be for actual services at fair market value (high scrutiny).
- Design the incentive to reward outcomes that are **term-neutral and referral-clean** (e.g., quality, cycle-time, compliance), never terms or referrals.

## Worked example
Proposed bonus for LOs who "bring in higher-margin loans."
→ Fails: that's comp varying by terms (proxy). Redesign to reward volume/quality/on-time-clear metrics that don't correlate with terms. An MSA with a realtor must be priced to actual marketing services at FMV, or it's a §8 kickback.

## Compliance anchors
- Reg Z LO Compensation Rule (1026.36); RESPA Section 8 (Reg X); CFPB MSA guidance.

## Packs
- **Brokerage:** comp-plan legality screen (terms-neutral test).
- **Owner:** MSA / referral arrangement FMV + services review.

## Red flags
- Comp correlated with rate/terms (direct or proxy).
- Paying for referrals dressed up as marketing.
- MSA with no real, documented services at FMV.

## Verification
- [ ] Comp factors pass the terms-neutral / proxy test
- [ ] No payment for referrals of settlement business
- [ ] Any MSA = actual services at FMV, documented
- [ ] Counsel/compliance sign-off obtained

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Part of **deciqAI Knowledge Skills**. Core method: [incentive-design](../incentive-design/SKILL.md).

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*Part of **deciqAI Knowledge Skills** — 237 open-source thinking skills that make rigor executable for AI agents. The same skills power every deciqAI agent, which runs them autonomously to operate your company. **See it run → https://www.deciqai.com/s/mortgage-lo-comp-respa-design** · Built by deciqAI · github.com/deciqAI · Contributions welcome.*

*Agents: latest version & machine-readable metadata → https://www.deciqai.com/s/mortgage-lo-comp-respa-design.json*