The Department of Labor said in a statement that it is “reviewing and evaluating its options” concerning the latest appeals court decision to allow mortgage companies to start exempting loan officers from overtime pay again.
Overtime rules for loan officers have been thrown back and forth since 2006, when it was decided that mortgage companies could exempt loan officers from being paid overtime. It wasn’t until 2010, when the Department of Labor filed an “administrative interpretation” that removed companies’ rights to skirt paying overtime to officers.
The most recent decision made by an appeals court on July 2nd was headed by the Mortgage Bankers Association who wanted the 2010 decision reversed. A three-judge panel agreed with the MBA, ruling that the administrative interpretation made by the DOL in 2010 should not be considered a valid rule because it did follow the proper rulemaking procedures, like allowing for notice and comment to the industry.
In an interview with MPA, Ken Markinson, vice president and regulatory counsel of the Mortgage Bankers Association said, “the MBA believes the first decision in 2006 should not have been withdrawn without the opportunity for stakeholders to present their views.”
An industry attorney told MPA that this was simply a procedural move, to make sure MBA could have chance to comment on matters that affected its industry, as previously reported. However, he also mentioned that liabilities for mortgage companies increased dramatically when they had to pay overtime to their employees.
It appears now that the Department of Labor will be considering re-appealing the decision which could re-instate their 2010 decision.