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
Jim Nabors, President
National Association of Mortgage Brokers