What is it called when a loan originator persuades a consumer to consummate a transaction based on greater compensation for the originator?

The correct term for when a loan originator encourages a consumer to proceed with a transaction motivated by the prospect of greater compensation for themselves is "steering." This practice involves directing consumers toward specific loan products or terms that may not necessarily be in their best interest but are more profitable for the originator. Steering can lead to potential conflicts of interest, where the loan originator prioritizes personal financial gain over the consumer’s needs, ultimately compromising the integrity of the lending process.

Steering can also be seen as harmful as it might lead consumers away from better options that could suit their financial situation more appropriately. It is viewed negatively within compliance frameworks because it does not adhere to principles of fair lending.