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Loan officer commission threatened to be withheld for mortgage loan officers

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  • Loan officer commission threatened to be withheld for mortgage loan officers

    Please help. There are several mortgage loan officers in my dept who have been threatened to have commission income withheld from our paychecks due to the loan posting negative income due to the raising rate environment. The problem is, in the department in 2008, there were several loan officers who went "negative" to the tune of over $2 million dollars and NONE of them were withheld commission income nor disciplined. Now that the next few months will represent some negative numbers, they are trying to enforce a policy now that went ignored by mgmt for the past 2 years. 1) if we are using the same sales contract from 2007 (and current), is there not a policy about the precedent that was set in the past (NOT to withhold commision) vs attempting to now withhold income 2 years later? I've been told about a past practice precedent issue that may aid in my cause. 2) Does this policy have to be uniform to exist legally? Can mgmt pick/choose which loan officers, which loans, when to enforce policy at their liking? Thanks in advance for assisting us.

  • #2
    Since you have an actual contract, you are going to need to take that contract to a lawyer in your area to review and see if the proposed policy violates it in any way. This isn't something that can be answered for you on an online message board.
    I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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    • #3
      Thanks for the reply ,more info

      Further info, the sales contract does state: "NEGATIVE POINT BANKS WILL BE CHARGED AGAINST YOUR EARNED COMMISSION". Again, for several years (3+) mgmt has NOT charged loan officers for going negative to the tune of over $1 million dollars, so i'm still going with the Past Practice principals that mgmt has been inconsistent in enforcing this policy; the loan officers and mgmt knew about the inconsistencies of the past few years and it has happened repeatedly in our dept despite nobody having their earned commission charged or withheld from them. Thanks again to anybody else who can support my claim of past practice in my defense.

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