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Mortgage Originators

hchandlerhchandler 3 Posts
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For those of you in banking...How have you handled your mortgage originators pay issue? Does anyone have them as full-time employees with full benefits?
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  • 7 Comments sorted by Votes Date Added
  • ACU FrankACU Frank 2,188 Posts
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    Ours is fully commissioned, with benefits. The job description is built on an outside sales exemption, with plenty of responsibility for business development and broker agreements, as well as mobile closings. This is going to create a Reg Z headached in 2011, as we currently pay him commission on yield spread on secondary market loans.
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  • wbowenwbowen 9 Posts
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    Up through this year, our Originators have been classified as exempt & full time (and benefited as any other full time employee). Going forward, these will be paid hourly per new interpritation of exempted positions per DOL. It seems as though we are one of the few banks in our area that still pay our originators on a non commission basis. We do provide incentive pay based on production and loan quality (among a # of other factors).
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  • Dutch2Dutch2 1,590 Posts
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    We continue to pay our Mortgage Lenders as exempt with full beneifts and at this point in time plan to continue with this practice. I have covered the new DOL position with our President/CEO and COO as well as other Ex. Mgmt and the decision is to stay the course.
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  • Sharon McKnight SPHRSharon McKnight SPHR 737 Posts
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    [quote=Dutch2;721136]We continue to pay our Mortgage Lenders as exempt with full beneifts and at this point in time plan to continue with this practice. I have covered the new DOL position with our President/CEO and COO as well as other Ex. Mgmt and the decision is to stay the course.[/quote]


    Isn't that a bit of a risk given the DOL's interpretation?

    Sharon
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  • ACU FrankACU Frank 2,188 Posts
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    Which exemption are you using, Dutch?
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  • hchandlerhchandler 3 Posts
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    Does everybody have their originators set up to receive in-house and outside leads? Does anyone pay differently for outside leads? We have ours now as Salary (non-exempt) with commission. They have to make a set amount of sales in order to receive commission. But with new regs we will have to change that. We are thinking about a salary(non-exempt) with a quarterly bonus/incentive. Does anybody have an idea for setting up the incentive where it will meet new regulations?
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  • ACU FrankACU Frank 2,188 Posts
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    What's your rationale for doing salaried non-exempt? I've never done that, but I know some of you do.
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