Timothy Watson and Barry Miller Published in the National Mortgage Professional Magazine
“Department of Labor’s Reversal Requires Creative Approach to Compensation for Mortgage Loan Officers”

Timothy Watson and Barry Miller’s article, “Department of Labor’s Reversal Requires Creative Approach to Compensation for Mortgage Loan Officers,” was published in the June 2010 issue of the National Mortgage Professional Magazine. In their article, the authors discuss the drastic change in the Department of Labor’s (DOL) views about how mortgage loan officers must be paid.

According to their article, for decades the DOL viewed mortgage loan officers as exempt from federal overtime requirements, but recently changed its view and issued a new Administrative Interpretation making them eligible for overtime pay. Tim and Barry note, “As a result [of the new Administrative Interpretation], mortgage lenders are struggling to find a way to reconcile the shift in the DOL’s position with the realities of the lending marketplace.” They point out that many employers in the mortgage lending industry are taking the DOL’s new position seriously and are beginning to analyze how it will impact their employees who are accustomed to a salary and commission pay structure.

Tim and Barry conclude, “Employers that are proactive in responding to the DOL’s reversal in its position regarding loan officers and overtime compensation will be in the best position to avoid costly litigation and may also find themselves at a competitive advantage in the marketplace by ensuring that their compensation practices are well-aligned with their business objectives.”