Loan Officer Unpaid Overtime and Minimum Wages
All too often, loan officers employed by banks, mortgage companies and other financial institutions are wrongfully denied overtime pay when they work more than 40 hours per week. The failure to pay overtime and/or minimum wage – through “commission-only” pay schemes or otherwise – is a rampant in this industry.
The United States Department of Labor (DOL) defines a loan officer as someone that evaluates, authorizes or recommends approval of commercial, real estate or credit loans. In addition, a loan officer may advise borrowers on financial status and payment methods and includes mortgage loan officers and agents, collection analysts, loan servicing officers and loan underwriters. The DOL has stated that typical loan officers are entitled to minimum wage and overtime wages. Likewise, loan offices are entitled to a guaranteed minimum wage and overtime under state wage laws.
There are three common unpaid wage violations typically perpetrated against loan officers:
1) Loan officers are paid on a “commission-only” basis but misclassified as exempt to avoid paying a guaranteed minimum wage (or salary) and overtime;
2) Loan officers are paid a salary but misclassified as “exempt” from overtime; and
3) Loan officers are paid hourly but work off-the-clock without pay.
We currently represent loan officers who work for Planet Home Lending, Interstate Home Loan Center, Inc., Federal Savings Bank and Gateway Funding. We are also investigating Hamilton Group Funding, Trust Mortgage, Platinum Home Mortgage, PHH Mortgage, Prime Mortgage Lending, Reliance First Capital and Universal Mortgage and Finance for similar violations.
You can find answers to frequently asked questions about loan officer lawsuits here , however if you work or worked as a loan officer and would like more information on your wage rights, contact us.