The CFPB has issued Bulletin 2012-02  to address concerns as to whether the mortgage loan originator compensation rule in Regulation Z (Truth in Lending Act) prohibits originators from participating in a qualified profit-sharing 401(k) or employee stock ownership plan (Qualified Plan). In the Bulletin, the CFPB advises that loan originators can participate in a Qualified Plan. The CFPB is currently working on rules to implement the loan originator compensation provisions of the Dodd-Frank Act but decided it was important to issue the clarification now rather than wait for the final Dodd-Frank rules to be adopted. Our legal alert contains a detailed discussion of the Bulletin.