How a bank compensates mortgage loan officers can present legal risk for the bank. Banks need to make sure their compensation practices comply with the federal Fair Labor Standards Act and related state laws, as well as Regulation Z.
Threshold Question: Are Loan Officers Exempt or Non-Exempt?
The exempt / non-exempt status of mortgage loan officers has been heavily-litigated in recent years and has been the subject of several Department of Labor opinion letters. The inquiry remains very fact-specific and depends on what the loan officers actually do not just on their job descriptions. Relevant questions include:
- How the