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A message from NAMB Convention Committee Chair George Hazimanolis, CRMS

Jun 11, 2006

Mission Accomplished: NAMB solves loan officer exemption issueEric C. PeckNational Association of Mortgage Brokers, U.S. Department of Labor, wages, hour law, outside sales force, Fair Labor Standards Act, FLSA. DOL issues guidance on compliance with outside sales force exemptions The National Association of Mortgage Brokers has been issued an opinion letter from the U.S. Department of Labor (DOL) clarifying the wage and hour and overtime issue as it applies to loan officers. In the March 31 letter, the DOL stated that loan officers can qualify as outside sales employees, making them exempt from the minimum wage and overtime requirements of the federal wage and hour law, the Fair Labor Standards Act (FLSA). This is a huge victory for NAMB mortgage brokers and for the entire industry," said NAMB President Jim Nabors II, CRMS. "We first noticed this problem when an increasing number of NAMB members were being mistakenly singled out by the DOL, based on wage and hour rules that were murky at best. It was a long process requiring considerable resources, but in the end our efforts paid off. Now every mortgage broker will have DOL guidance on compliance with outside sales force exemptions under the FLSA. We hope that a landmark victory such as this will convince more mortgage brokers to join NAMB and help support our work on behalf of the entire mortgage broker industry." A letter from NAMB was originally submitted to the Honorable Alfred B. Robinson Jr., Deputy Administrator of the Wage and Hour Division, Employment Standards Administration for the DOL on Sept. 14, 2005. NAMBs letter, authored by President Jim Nabors, requested a written ruling, approval or interpretation regarding overtime regulations under the FLSA. Of course, we're very happy with this outcome," said NAMB President-Elect Harry Dinham. "The role of an industry association such as NAMB is to help its members stay in compliance with federal regulations and operate as profitably as possible. Securing this letter from the DOL does both. It is one of many victories we have achieved to date, and hope to achieve in the future. The March 31, 2006 letter from the DOL to NAMB can be downloaded by clicking here... The Sept. 14, 2005 letter from NAMB to the DOL can be downloaded by clicking here... More information on this story can be found in the May 2006 issues of The Mortgage Press.
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Jun 11, 2006
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