By Robert R. Davis, ABA executive vice president for mortgage markets, financial management and public policy
December 15, 2010 – (RealEstateRama) — “ABA, along with other financial trade associations, filed an amicus brief yesterday in opposition to applying overtime regulations to most bank employees who originate residential mortgages. The amicus was filed in the case of Henry vs. Quicken Loans in the United States District Court of Eastern Michigan. “The amicus brief argues that the new Administrator’s Interpretation marked a sudden and dramatic shift in the Dept. of Labor’s position that is inconsistent with the regulations that it seeks to interpret, and that the sudden and dramatic reversal of course results in an unfair surprise to employers who have reasonably relied on the Dept. of Labor’s prior interpretations.”
“ABA’s amicus brief is in direct response to the Department of Labor amicus brief regarding the level of deference to be accorded to Administrator’s Interpretation No. 2010-1, issued on March 24, 2010, by the Department of Labor’s Wage and Hour Division. The Administrator’s Interpretation, which was filed without seeking input from the mortgage or banking industry, concluded that the ‘typical’ mortgage loan officer does not qualify for the administrative exemption from overtime requirements, a conclusion that completely contradicts two of the division’s prior opinion letters addressing this exact issue.
“For years, the banking industry has relied on the Dept. of Labor’s position that mortgage loan officers fall within the administrative employee exceptions to the Fair Labor Standards Act’s overtime requirements. The banking and mortgage industry has structured its employment and compensation practices with respect to thousands of employees on this previously-settled legal expectation.”
The entire amicus brief can found here.
The American Bankers Association represents banks of all sizes and charters and is the voice for the nation’s $13 trillion banking industry and its two million employees. Learn more at aba.com.
ABA Media Contact:
Margot Mohsberg Johnson