A few weeks ago, I wrote about a loan officer who took her database with her when she switched mortgage companies. Her previous mortgage company sued her for taking not only the database, but also the personal information of her clients.
I don’t know if this was covered in her employment contract, but I decided to take a Facebook poll and ask what other employment clauses loan officers should look out for when signing an employment contact.
You may already have a contract signed. Or, you are being asked to sign another one because of new CFPB rules and regs. Contracts are not set in stone; they are negotiable.
So, even if you have an employment contract now, I suggest that you review it. If some of the 18 things I’m about to list are not covered or are unclear, you might want to get them clarified right now before it’s too late!
- What happens to your pipeline if you quit?
- What happens to your pipeline if you get fired?
- What happens to loans if you are disabled or must take a leave of absence?
- What happens to the leads (not a loan app yet) if you leave the company?
- What is the company policy on internet and social media marketing?
- Who owns the database if you quit or are fired from the company?
- When do commissions get paid while you are employed?
- What are the reasons you would not get paid a commission on a file?
- What is the commission policy if a loan closes after you leave the company?
- Is there a non-compete clause?
- Will you be allowed to talk with processors and underwriters?
- What are the reasons or violations you could get fired for?
- If you violate the rules and regulations, what is the commission policy?
- Who is responsible for paying for marketing and promotions?
- Does the company have the right to make changes to a written contract without notice?
- Does the company require you to pay back commissions (or portions of commissions) and for what reasons?
- When signing an updated contract, watch for clauses that have been “removed” from the original contract.
Just a couple of tips:
- Have an attorney also review the contract.
- Compare the old contract with the new contract.
- If the "wording" is not clear to you, or not specific enough, keep working on the wording until it’s perfectly clear to anyone reading it. If your mother doesn’t know what it means, neither will a court of law.
Read the complete conversation at www.Facebook.com/karendeis.