Need some opinions here... My comp plan for 2012 was based on a salary plus a bonus based on loan volume. The bonus was to be paid at year-end but the company is trying to deduct about $1900 in appraisal fees from my bonus that we incurred for various reasons.
Does anyone know with the new LO Comp rules if your employer can "legally" deduct anything from your agreed upon comp plan. I thought I had read something about the agreed upon comp plan "not" being allowed to be adjusted for any reason.
Just curious if anyone has encountered this and/or can point me to information that would pertain to this issue. Thanks for any suggestions
by Loan-er January 17, 2013 11:27 AM
Read your written agrement about those fees. If you wanna work there you might wanna keep your mouth shut. A company doesn't have to pay a bonus out at all....until a court orders it.
by Power Pig January 17, 2013 12:48 PM
You also might want to get your borrowers to pay in advance for their appraisals, for the obvious reasons.
by tropical breeze January 17, 2013 1:36 PM
Originators where I work understand that we are responsible for appraisal costs and other costs on loans that did not close and we elected not to collect those fees upfront. Your compensation on closed loans is not being affected, there is just an adjustment for uncollected fees on loans not closed. I think the company would be justified in reducing your bonus or even your regular pay for these costs UNLESS they are on closed loans, then costs should have been taken care of at closing.
by CO gal January 18, 2013 7:56 PM