Mortage Brokers

According to the Department of Labor (in an opinion letter), Mortgage Brokers are supposed to be classified as nonexempt employees who are entitled to overtime. In the Department of Labor determination, the Mortgage Brokers performed the following duties that the DOL found did NOT qualify the brokers as exempt:

Develop new business for the employer by contacting prospective borrowers and referral sources; evaluate the borrowers' financial situation and provide a "prequalification letter" that is used by the borrower, real estate agents, and potential sellers in negotiating the sale; consult with borrowers to obtain the best loan package available (e.g. best interest rates, lowest points and fees, maximum affordable loan amount); work with approximately ten different lenders in selecting loan programs for borrowers; consult with the borrowers regarding the desirability of "locking- in" a given interest rate; assist the borrowers in preparing a loan application for a selected loan program; present and obtain signature of the borrower on disclosures required by federal and state laws; submit loan application to the central office for processing; and consult with loan processors or the borrowers in resolving problems or in obtaining additional information regarding the loan package.

These particular brokers were also subject to very little supervision.

Courts interpreting the administrative exemption have also found that mortgage loan officers should be classified as nonexempt. If you are a mortgage loan officer (or any other loan officer for that matter) and you are not getting paid for overtime, then you may be entitled to unpaid wages and liquidated damages.

If you feel you may be owed unpaid overtime pay and you would like to pursue your claim, please contact us or fill out our questionnaire and we will call you.