twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.

Government Sued Over LO OT Ruling

MBA v. Department of Labor

Jan. 12, 2011

By staff

A federal lawsuit has been filed against the government over the reversal of its position on originator overtime.

A complaint was filed Wednesday by the Mortgage Bankers Association in U.S. District Court for the District of Columbia against the Department of Labor, a news release said. The case was filed under the Administrative Procedure Act.

MBA said it seeks to set aside the department's Wage and Hour Division Administrator's Interpretation No. 2010-1 from March 24, 2010.

According to the trade group, the interpretation reversed and withdrew a 2006 opinion letter to MBA that interpreted the department's own regulations and concluded that typical loan officers were exempt from Fair Labor Standards Act requirements for overtime payments under the "administrative exemption."

MBA said that the mortgage industry relied on the 2006 opinion letter and operated on the basis that originators qualify for the administrative exemption under the FLSA.

The abrupt reversal of the 2006 ruling by the Labor Department has created unnecessary litigation for mortgage lenders.

MBA Chairman Johns A. Courson said in today's statement that the department should have provided notice and an opportunity for public comment if it wanted to reverse the 2006 opinion.

"In issuing this administrative interpretation, the department ignored that statutory requirement," Courson stated. "This abrupt reversal by the department not only opens lenders up to lawsuits for past actions, but also could require them to make costly changes to their internal operations and compensation structure, costs that will ultimately be borne by the consumer."

The trade group's chief explained that originators won't see increased compensation just because they are required to be paid for overtime. In addition, loan officers will lose their flexible schedules if they have to track and report their hours.

MBA seeks to set aside the March 2010 ruling and require that the Labor Department follow the rulemaking procedure if it wants to reverse the 2006 ruling.

"The suit also urges that, because the DOL's interpretation in the administrative interpretation is contrary to the plain language of the regulations and the preamble interpreting them, the administrative interpretation is arbitrary, capricious, an abuse of discretion, and otherwise contrary to law," the news release stated.

The trade group hopes that by winning in court, the 2006 interpretation will stand -- providing an administrative exemption for loan officers from overtime and preventing enforcement, application and implementation of the administrator's interpretation.

MORTGAGE BANKERS ASSOCIATION, 1717 Rhode Island Avenue, NW Suite 400, Washington, D.C., 20036, Plaintiff, v. HILDA L. SOLIS, sued in her official capacity, Secretary, United States Department of Labor, Frances Perkins Building, 200 Constitution Avenue, Washington, D.C., 20210; NANCY LEPPINK, sued in her official capacity, Deputy Administrator, United States Department of Labor Wage and Hour Division, Frances Perkins Building, 200 Constitution Avenue, Washington, D.C. 20210; UNITED STATES DEPARTMENT OF LABOR, Frances Perkins Building, 200 Constitution Avenue, Washington, D.C. 20210.
Case No. , Jan. 12, 2011 (U.S. District Court for the District of Columbia).

next story

back to current headlines

Mortgage Employment News | Employment Index | Employment Statistics
Job additions, layoffs and employment lawsuits. Employment data from the Department of Labor, state tracking, reports and analysis. Job finding tips.

Financial Regulation News | Mortgage Regulations
Bank and mortgage regulators, regulations and regulatory actions. Coverage of regulatory legislation and testimony.
Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders