Mortgage Loan Officer Training

DOL's analysis is grounded on its conclusions that the main task of credit processors is to sell, and on the finding that this type of work is not related to the "management or general business" of the employee or client of the employee, as required by dispensation from pay. Four basic principles exist for characterising the DOL of mortgage loan specialists as mainly "sales personnel".

Mortgage loan clerks in general, according to information provided by the German Mortgage Credit Association (DOL), (1) are generally primarily remunerated by commission; (2) often undergo training in merchandising skills; (3) are generally valued by the number of credits they generate; and (4) are often characterised by their employer as external sellers when trying to train them to make outside purchases (an issue that does not predominate unless the loan clerks are most of the times outside the bureau selling).

Considering that the strong focus on the distribution role can make the introduction of the exemption difficult, many banks - based on earlier versions of OECD Directive - have in the past found that mortgage loan officer are released administrators because their main role is " the general manager or operation " of the employer's clients. Indeed, the new interpretation of DAX significantly undermines its capacity to assert itself with this point, as DAX now holds the view that the client dimension of the regulation applies only to clients that are companies, not to clients that are individual persons.

Thus, mortgage loan managers could take the test for relief, but mortgage loan managers would not. Firstly, the DOL interpretation concerns only Swiss legislation. A number of states, e.g. California, already have an equal or more restricted interpretation of the exception under national legislation, so that changing the DOL's policy is of minor importance in some states.

Secondly, the interpretation only mirrors the DOL's opinion on assertiveness and can still be examined in court. Nevertheless, finance sector bosses (and other companies with "sales employees") can anticipate that the interpretation will make it difficult to successfully argument that workers with "sales responsibility" are eligible for administration bail. Any employer with a question on the use of the leave of absence criterion for a particular position or employee is requested to consult a solicitor.

Banks and other companies that currently consider mortgage specialists or similar staff with significant "sales obligations" to be exempted from working long hours should promptly and thoroughly re-evaluate their situations. Credit clerks who oversee two or more full-time equivalent staff may satisfy the leave of absence requirement. Think about adapting the employee's responsibility so that they are eligible for the external revenue waiver if they "usually and regularly" carry out their selling tasks outside the offices.

Think about the distinction between home loan managers and business loan managers, as staff whose role is to advise companies on their finance and lending needs may pass the administration release test. When loan officer or similar staff have responsibilities that put them in a grey area, but a continuing leave of absence is preferred, please make sure to set careful limits on their working times and make sure that there is a clear understand that the remuneration they receive includes all working hour to minimise any possible obligation to work extra working time if it is later found that they have been wrongly classified.