1. What is a CLO?
Answer: A CLO is a computerized loan origination system. A CLO provides a list of lenders and their loan rates to consumers. The list of provider names on the CLO must be presented in a neutral format.
2. Can the CLO provider charge a fee for providing the CLO service?
Answer: Yes. A reasonable fee can be charged for providing this information.
3. Can a lender reimburse the borrower for payment of the CLO fee?
Answer: Yes. This issue was addressed in the 1996 RESPA rule.