MBS prices are down 3/32nds this morning. Leading Indicators were released at 10:00 a.m. et and were a little stronger than expected. Last week was another good week for mortgage rates. Mortgage rates fell about 10 basis points during the week. The Fed Beige Book painted a pretty picture for mortgage rates, slow growth and low inflation. CPI confirmed the low inflation part as it reported prices in March rose at a 1.1% annual rate. Volatility continued during the week. Volatility has persisted since the end of the MBS purchase program on March 31st. As the Fed is no longer a consistent big buyer, the market is functioning more naturally and that includes reacting more significantly to economic announcements and changing sentiment.
Mitch Kider, of Weiner Brodsky Sidman Kider PC, joined the show to discuss the result of a recent Department of Labor ruling which changes an interpretation of labor laws as it relates to loan originators (LOs) and overtime. The new ruling overrides previous rulings that allowed LOs to be exempt from overtime as they were considered to be performing administrative duties. Now their duties are not considered administrative and the labor laws says, if they do not meet the definition of an outside salesman, they should receive overtime. This raises many questions. Do LOs need to begin to fill out time sheets? When are LOs not working? Aren’t they selling all the time? How do you measure the amount of overtime to pay? How far back do companies need to go to determine if overtime is due? Mitch will join the show again next week (Monday @ 12:00 p.m.) to answer these an other questions on this subject.
We would like to hear from you. Has your company already begun to pay LOs overtime? Do LOs really want to work stated hours and document their time?