Hi all,

I must have been hibernating, do any of you know about a new law now requiring mortgage loan officers to be hourly?

No there's no law like that out there.  I've heard about certain people in the government trying to get rid of YSP, which could lead to some sort of pay scale like that, but nothing concrete.

Jan Mullins:

do any of you know about a new law now requiring mortgage loan officers to be hourly?

I think that what you are referring to is discussed in the following article. 

http://www.martindale.com/labor-employment-law/article_Howard-Howard-Attorneys-PLLC_993838.htm

You can find more by doing a Google search

This law is not new. It just hasn't been consistently followed in our industry. However there is a new DOL memo that explicitly states that Loan Officers, for the most part, are non-exempt employees.

Here is a good explanation from a labor law attorney's website of exempt vs. non-exempt in the Fair Labor Standards Act.  http://www.flsa.com/coverage.html

The FLSA is regulated and enforced by the U.S. Department of Labor. www.dol.gov Here is the recent Wage and Hour Division's Administrative memo regarding mortage originators. This may be what you are thinking of: http://www.dol.gov/WHD/opinion/adminIntrprtn/FLSA/2010/FLSAAI2010_1.pdf

Mortgage companies may run afoul of the FSLA if they treat inside LOs as exempt from the overtime provisions of the FSLA. For example if they pay inside sales LOs no base pay, no overtime, and only commissions on loans funded; particularly if the loan officers work more than 40 hours per week. On the other hand loan officers that work as outside sales may be considered "exempt" from the overtime rules and may be paid on a strictly commision basis.