Federal Court Invalidates DOL’s Mortgage Loan Officer Exemption “Interpretation”
July 18, 2013
The Federal Circuit Court of the District of Columbia invalidated the U.S. Department of Labor’s 2010 interpretation that reversed its position on mortgage loan officers.Pursuant to an earlier 2006 opinion letter, the duties of a mortgage loan officer were generally considered exempt duties under the “administrative” exemption.But the agency reversed itself in a 2010 interpretive letter and declared those duties not exempt.The Mortgage Bankers Association sued the agency on the grounds that the 2006 opinion had created definitive expectations in the industry that could not be revised without the DOL complying with the Administrative Procedures Act by publishing the interpretation and allowing for public comment. The DOL had not done this. The D.C. Circuit Court court agreed and invalidated the 2010 interpretation.
See CBA’s Regulatory Compliance Bulletin for more information.