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Guaranteed Rate Faces Wages and Overtime Class Action

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San Diego, CA: An employment class action lawsuit has been filed against Guaranteed Rate Inc, alleging that the mortgage lender has violated the rights of loan officers under the California Labor Code. The lawsuit against Guaranteed Rate for Labor Code violations was filed in San Diego Superior Court, entitled North v. Guaranteed Rate Inc.

The class action complaint alleges that the mortgage lender unlawfully paid loan officers below minimum wage, failed to compensate them for overtime hours worked and unjustly deducted expenses from previously earned wages, in violation of state wage and hour laws. The complaint asserts that Guaranteed Rate incorrectly and intentionally classified loan officers as "outside salespeople,"making them exempt from some minimum wage and overtime regulations. However, these outside sales employees claim to have spent more than 50 percent of their working time in their homes, which the employees argue is considered the employer' places of business for purposes of the outside sales exemption from minimum and overtime wage laws.

The Guaranteed Rate Loan Officer class action lawsuit further alleges that the mortgage lender intentionally misclassified the loan officers as outside salespeople in order to avoid overtime and minimum wage requirements in violation of California employment laws. Specifically, the complaint states, the sales plaintiff was paid a "percentage of the profit obtained from the sale of the loan"and as a result "there were pay periods during which the Plaintiff received less than minimum wage or no compensation."This compensation structure caused the loan officers to often work more than 8 hours per day and/or 5 days per week, which was allegedly known by the the Mortgage Loan Company. According to California overtime laws, employers are required to pay employees overtime compensation for all hours worked in excess of eight hours in a single workday or forty hours in a workweek.

The loan officer class action against Guaranteed Rate further alleges violations for unlawful deductions of earned wages in the form of "loan processing rush fees, marketing charges, loan appraisal overages and other related chargebacks on loans which the [loan officers] had already earned compensation."According to the California Labor Code, it is unlawful for an employer to take back any portion of an employee' wages previously paid to said employee.

Guaranteed Rate Wages and Overtime Class Action Legal Help

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Reader Comments

Posted by

on
I am a VP/loan officer in Northern California. I am now on my third transaction in under a year that Guaranteed Rate has decided to not pay me on once the loan got near closing. Operational and internal errors that were out of my control and admittedly not a fault of my own lead to this company calling these loans “outside the agreement of my contract”. Worst wage-theft I have ever witnessed. Must go to court to fight but in the meantime there are $2M in commissions unpaid to me on loans of mine. Do not make the decision to work here in any capacity and certainly think twice about closing a mortgage with this company. Worst mortgage lender on planet earth.

Posted by

on
I may need help from a lawyer recover my money and the unjust done to me.

Posted by

on
I worked for Guaranteed Rate from December 2014 to November 2015. In this time period i was never paid according to my Comp agreement. They made an initial error that was caught by myself after 90 days. I was given a new contract but it was still incorrect. I refused to sign it because it was still wrong. I was provided emails from my branch manger , his regional manager and the commissions dept that they couldn't change the contract but to sign it as they extended the " Accelerated plan period to override the mistake of being on a tier comp plan at a lower basis points per loan". When I was not paid correctly the next pay period I brought this to there attention again and it took 4 additional months for my branch manger, his regional manager and his divisional manger to get with the next in line to the CEO to tell me that the contract that was signed was different than what the Commissions dept shows. They contract and the emails was not enough for the m to pay me the difference on all the loans that accrued in the 4 months it took them to review!
To get results i had to go directly to HR. I was directed back to the person in charge of making a decision( that already took 4 months) and they gave me this: " they admitted there was an error and for me to earn the money owed to me by closing 3 million in loan volume within a months time It was November 1st and gave me tell December 31st or no Pay"! Might i add in between all of this they lowered my comp agreement.

They were making me earn my money again at lower pay ! I refused to sign this and Finally Quit the next Day.
This company also transfers loans into Corporate salary based employees with Lo licenses in Chicago when problems with rate lock pricing of loans fell under the Loan officers comp agreement plan. Regardless of the error or multiple loan extensions because the lack of internal processors to handle the loan volumes. When you fell below your comp agreement and the lock was reconciled before closing you get an email telling you the loan is below your comp plan and its being transferred or the loan wont close!

This happened multiple times right before closing. Thousands of dollars lost and the company still made full profits and if there was a big enough problem they took commissions from other loans closed to pay for the loan with a problem out of your monthly commissions!

This Company is Bad News! Justice comes in many forms Guaranteed Rate! Its only a matter of time!
There is a reason Every person from the Branch In Gilbert, Arizona that opened less than a year ago Left!

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