Legal Question in Banking Law in New Jersey

Loan officer

Can a employer charge fees to the LO if a loan does not close? Not a 1099 employee but W2 100% commission. Can not work extra hours or would be paid overtime. Not in contract for employment to pay appraisal, credit report fees, ect. Isn't this illegal? Example uderwriter in house requests 2nd appraisal/desk review, if loan does not close, LO must pay out of next check. If refused then loses loan.


Asked on 6/24/08, 11:51 am

1 Answer from Attorneys
Robert Davies The Davies Law Firm, P.A.

Re: Loan officer

Your explanation is not crystal clear. However, if I understand this at all, I would think it is completely insane. Illegal? I would need more information.

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Answered on 6/24/08, 3:08 pm


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