Six Reactions to Prospect Mortgage's Win in Loan Officer Pay Case
Prospect Mortgage recently won a jury trial by applying the outside sales exemption to a loan officer suing Prospect for minimum wage and overtime. Following are comments posted by readers, showing many, but not all, loan officers view themselves as independent contractors. Others think W-2 tax classifications by employers are at odds with that view. Image: Thinkstock.
"When such a person as this is taking all of the expenses and advertising, whether it be referral based or otherwise, they are most definitely considered self-employed. This is more of a win for those of us who contend we are a small business owner." Image: Fotolia.
"My question is what part of 100% commission this loan officer did not understand?" Image: Fotolia.
"Very interesting. I just started working for Prospect Mortgage. I with agree with the other followers comments. Loan officers should be treated pay-wise as independent contractors." Image: Fotolia.
"It is unfortunate for LOs to suffer such discriminatory rules. We get certified and licensed just like Realtors or insurance agents. Why do we have to be on W-2?" Image: Thinkstock.
"LOs no longer paid on a 1099 basis but rather on a W-2 [are] considered an employee...and no longer an independent contractor. I believe it is this employee status that drives the originator to request a minimum hourly pay." Image; Thinkstock.
"I have never met a loan officer (except...in a call center)...asking to be paid...hourly...or...tied into..,hours until the economy gets tough or their employment is terminated...These people should be embarrassed for bringing these types of suits." Image: Thinkstock.