Mortgage Grapevine

Net Branch Branch Manager not being paid, What should I do?

I use to run a net branch for a mortgage company. I had myself and two other employees so it wasn't that big. One of my employees had loans in his pipeline and decided that he would rather get paid minimum wage on hours that he claimed he worked then get paid the commissions on the loans so he filed a claim with the labor board to be paid minimum wage. The parent company felt that it was my responsibility to cover the pay and in turn would not release pay to me until it was resolved. I was able to get it resolved last week and had signed documents from the states labor board that the former employee agreed to be paid X. That wasn't good enough for the parent company, they wanted to make sure that he signed something that released them of any future claimsí. The employee signed that as well and sent that to them last week as well. The final pay for that particular employee was paid out today.

That above scenario caused my parent company to panic and have my other employee sign a form as well to release his last pay saying that he wouldn't go after the parent company for back owed minimum wage pay. That employee did and was compensated today on the loans that he closed.

None of us work for the parent company anymore. I, however, haven't been compensated for the loans that have closed. I have a feeling that the parent company is doing this because they are bitter that they got dragged into this. I get it, and it's unfortunate, but I don't think that they have a right to continue to hold my pay. At this point, I really can't see any reason why they would. I'm owed nearly $8000.

My question is, what should I do to get paid today? I've emailed the parent company, but it's a small operation so I rarely hear back from them. I'm wondering if I should go to the labor board for the state that I'm in or go to the banking authority as this is a bank that I worked for. Has anyone had anything like this happen and how did you get it resolved?


by rmguru December 15, 2010 8:51 AM

I'm no attorney, but
Get An Attorney
by frankenstyle December 15, 2010 9:03 AM

I wouldn't rely on emails to get it done. I would get on the phone with them ASAP and find out what their problem is.

Maybe it is something you can resolve easily and get paid, maybe not. If not, then Frank is right - get your attorney involved. If you are owed the commissions then they have no reason to withhold it.

Check your agreement with them to make sure there are no clauses where they can withhold funds from you too.

Good Luck!
by TheKyle December 15, 2010 9:14 AM

I would love to get on the phone with them, but they don't ans the phone. There is two clauses in which they can withhold money. 1. If you are terminated from "company" and have loans in your pipeline, you will only be compensated 50%. 2. Any outstanding invoices will be held back.

I have neither of those 2. What a bummer that I have to get an attorney for this. That's going to eat 20-40% of my pay.
by rmguru December 15, 2010 9:22 AM

Yeah, you don't need to pay a lot for a letter. I'm assuming you are terminating your relationship with them because the letter will do that anyway. find one through a friend, they'll probably charge you a couple hundred to write it.
See, they think you are going to pull the same labor board move as your l.o. did. Get your commission and then try to collect minimum wage.
by frankenstyle December 15, 2010 9:31 AM

Why can't you go to the labor board for your commissions owed?
They don't just handle hourly wage issues. I would try that before hiring an attorney.

Also, I would tell the company what you intend to do if they don't pony up with your income. Maybe the 'threat' of action will stimulate their self preservation instincts.

by Encompass mama December 15, 2010 10:01 AM

Labor board can only enforce minimum wage, regardless of employment contracts.
Threats don't do a thing. Put your money where your mouth is and get an attorney to write the letter.
Their legal costs alone would be more than 8K.
by frankenstyle December 15, 2010 10:08 AM

Frankenstyle is right. The labor board will only handle overtime and minimum wage. I spoke with an attorney and he stated that in the state that I'm in, as a commissioned employee, if the employer deliberatly fails to pay commissions owed, the law states that they are liable for 3 times the amount.

He said the only problem is that because they are not located in the same state as I am, all he could really do is write letters and file a complaint with the labor board. I could easily do the same thing.

I ended employment with them a week ago and accepted a new position that I start in 2 weeks, but this is still very frustrating and not something I want to have to deal with starting at a new company.
by rmguru December 15, 2010 10:23 AM

Big difference between a letter from you and a certified letter from an attorney. From you just says "here is what I might do," letter from the attorney is "here is what I am doing."
by frankenstyle December 15, 2010 10:34 AM

Are you an employee of the mortgage company or does your company have an agreement to do business with the mortgage company? Are W-2 wages withheld from your check from the mortgage company? The devil is in the details.
by the voice of reason December 15, 2010 11:03 AM

I'm an employee of the mortgage company and I'm a W-2 employee.
by rmguru December 15, 2010 11:05 AM

Yup, get an attorney. But find a new employer first! Wouldn't hurt to try to talk it over first. Take good notes! Good luck!
by the voice of reason December 15, 2010 11:29 AM

Here is what you have said:
If terminated, they pay 50%
Also, invoices need to be paid.

Since you quit last week, your employment was terminated. Doesn't matter who did it most likely. Also, is there a timeframe on how long they can holdback for outstanding invoices?
They will beat the hell out of that 8k, is that 50% of 16k in rev or 8k as an employee getting 100%?
by frankenstyle December 15, 2010 11:40 AM

I have a new employer. I start in 2 weeks. I hate getting an attorney involved, but if I have to, I have to. I was told by another branch recruiter that they have to release all funds to the branch manager upon termination. He said that if they don't respond to my requests to just file a complaint with the state which the bank is located in. The mortgage company that I use to work for is a subsidiary of a Federal Savings bank.

I'm just not that type of person that likes to threaten companys with law suits and attorneys and complaints to banking authorities and such. It's just not my style. I wish there was a better way, but I just don't see it.
by rmguru December 15, 2010 11:41 AM

Frankenstyle -

If terminated, any loans that haven't closed that are in my pipeline, I have 60 days to close them at a 50% rate of what I would usually get. I do have those loans, but plan on just transfering them to another company for obvious reasons.

I have no outstanding invoices.

I'm the branch manager, so I get 100% of the revenue after all fees and wages are paid.

The money that is owed to me is from a collection of loans that have already closed and funded.
by rmguru December 15, 2010 11:45 AM

So go to the state labor board. You were an employee. You quit. You are owed wages.
by the voice of reason December 15, 2010 11:56 AM

I hear you Archie. I'll do what I have to, but I want to give everyone a chance to make it right before I take further action. What I did was called and spoke to the owner of the bank that the mortgage company uses as it's subsidiary. I let him know what the case was and that all I wanted was to get paid what was owed to me and move on. He let me know that it's not how they like to do biz and that he would get it taken care of within 24 hours. Let's hope that's the case and this whole thing can be put behind me.
by rmguru December 15, 2010 1:05 PM

Here you go Arch

The Brothel

The madam opened the brothel door in Elko County , Nevada , and
saw a rather dignified, well-dressed, good-looking man in his late
forties or early fifties.

'May I help you sir?' she asked.
'I want to see Valerie,' the man replied.

'Sir, Valerie is one of our most expensive ladies.
Perhaps you would prefer someone else', said the madam.

'No, I must see Valerie,' he replied.

Just then, Valerie appeared and announced to the man
she charged $10,000 a visit.

Without hesitation, the man pulled out ten thousand
dollars and gave it to Valerie, and they went upstairs. After an hour,
the man calmly left.

The next night, the man appeared again, once more
demanding to see Valerie.

Valerie explained that no one had ever come back two
nights in a row as she was so very expensive. There were no discounts
and the price was still $10,000.

The gentleman did not blink an eye. Again, he pulled
out a wad of cash, gave it to Valerie, and they went upstairs...After an
hour, he left.

The following night the man was there yet again.
Everyone was astounded that he had come for a third consecutive night,
maybe a record in the

History of brothels in Nevada , which date back into
the early 1800's. But without hesitation he paid Valerie the ten grand
and off they went upstairs.

After their session, Valerie said to the man, 'No one
has ever been with me three nights in a row. Where are you from?'

The man replied, ' Billings , Montana .'

'Really', she said. 'I have family in Billings .'

'I know.' the man said. 'I regret to tell you, but your
sister died, and I am her attorney. She asked me to give you your
$30,000 inheritance.'

The moral of the story is that three things in life are certain:
1. Death
2. Taxes
3. Being screwed by a lawyer


by the voice of reason December 15, 2010 4:41 PM

That's pretty funny. Thanks for the laugh, I needed it today. I find that the tactic of not responding to phone calls, emails and instant messages that the head of the company is displaying towards me on this matter is so cowardly, I could puke. All I have been asking for is a reason why I wasn't compensated for the work that I performed. This whole thing is unreal and very frustrating. Iím beginning to think that if I donít hear back tomorrow from the owner of the bank, that Iím going to have to take all legal action available to get paid.

by rmguru December 15, 2010 5:12 PM

The person who wants hourly is wrong. They are at fault. They signed on for commission only. That's a contract you should have in your compliance file. They are dead wrong to go to the labor board. I betcha they didn't mention they signed on for commission only when they took the postion. Tell the board of Labor they are out of bounds. It's a commission only job and if he wants a regular hourly then he should never have agreed to this postion.
by boundlessloans December 15, 2010 5:17 PM


If they are W-2 employees, they are owed minimum wage. It's just the way it is. I took care of that part already though.
by rmguru December 15, 2010 5:22 PM

Well then don't sign commission based LO's on as W2. simple.
by boundlessloans December 15, 2010 5:54 PM

FHA loans, had to. That parts taken care of. The problem is that the owner of the mortgage company appears to be disgruntaled over the whole thing and now won't pay me my wages.
by rmguru December 15, 2010 7:02 PM


(No password? Register here)
(Don't be a nuisance.  Please avoid offensive language.  Advertisements are not allowed.)