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Keeping your credit in check

Jan 03, 2006

A message from NAMB president Jim Nabors II, CRMSJim Nabors II, CRMSFair Labor Standards Act, the National Association of Mortgage Brokers, compliance As part of the National Association of Mortgage Brokers' ongoing effort to inform and assist members in regulatory compliance, NAMB has launched a new business tool for wage and hour compliance. This resource, available exclusively to NAMB members, is accessible through the "Members Only" section of the NAMB Web site, www.namb.org. The site provides an overview of the minimum wage requirements of the Fair Labor Standards Act (FLSA), the U.S. Department of Labor's (DOL) enforcement and opinion letters, reported court decisions, state wage and hour requirements, overtime compliance and commission payment structures. We urge all NAMB members to use this Web site to conduct an internal review of minimum wage and overtime compliance with FLSA for all employees, including loan officers. There are many challenges relating to wage and hour compliance, particularly the recent legal developments that directly impact how mortgage brokers compensate employees and loan officers. New federal regulations governing "overtime" for financial services employees went into effect on Aug. 24, 2004. Recently, the DOL issued sweeping revisions to federal regulations that determine who is exempt from minimum wage and overtime pay. The new regulations deal with clarification of overtime for financial services employees if they meet certain salary and duties standards. These new rules provide specific guidance for financial services industry employees and contain major changes you must fully understand to remain compliant with the FLSA. NAMB is trying to secure clarification from the DOL on what would be required for loan officers to meet the "outside sales" exemption classification for minimum wage and overtime requirements of the FLSA. For loan officers to meet the outside sales exemption, certain job duties must be met. NAMB is seeking clarification from the DOL on such issues as: how much time loan officers must spend outside the office (including the loan officer's home); what referral sources does the loan officer contact to generate leads; does the loan officer can engage in marketing, promotion and business activities to support their own sales; must the loan officer deal directly and in person with clients to sell loan packages by meeting with clients at their homes or locations other than the employer's place of business; and how much time a loan officer may spend in the office working on sales. The association anticipates guidance from DOL on our request in the next few months. Please continue to monitor "News from NAMB," and keep watching the pages of The Mortgage Press for the latest information. The NAMB "Members Only" section of the Web site will have the latest information and compliance assistance for members. Sincerely, Jim Nabors, President National Association of Mortgage Brokers
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Jan 03, 2006
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