Former Employees Sue New Century

Kimberly A. England and Gregory M. Foshee, both former telephone loan officers for New Century’s Baton Rouge office, filed a lawsuit in the state’s district court Tuesday alleging the company routinely required them to work overtime without pay, the Associated Press (AP) reported. The suit could reportedly be certified as a class action if the judge approves it.

In a brief statement to MortgageDaily.com, a New Century spokeswoman said there are a total of 7 former and current loan officers in Louisiana.

Loan officers at the Irvine, California specialty lender — who were allegedly paid a base salary plus commissions on closed loans — had been classified under federal law by the company as workers entitled to overtime pay, AP reported. However, supervisors allegedly insisted that time sheets be filled out to reflect a 40-hour work week, no matter how much time was worked.

“Our legal counsel is investigating the claim,” the company’s spokeswoman said.

New Century reported 2002 production of $14.2 billion.