The Department of Labor said commissioned loan officers are entitled to overtime pay, reversing a 2006 ruling that favored the mortgage firms that employed the officers.

If the Wednesday declaration stands, it could increase compensation costs for mortgage originators at a time when production volumes are beginning to decline because of rising loan rates and expiring tax credits.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.