The American Bankers Association (ABA), along with other trade financial associations, has voiced its opposition for applying overtime regulations to most bank employees who originate residential mortgages.

An amicus brief filed in the case of Henry vs. Quicken Loans in the U.S. District Court of Eastern Michigan calls out the Department of Labor Administrator’s Interpretation’s for its conclusion that the "typical" mortgage loan officer does not qualify for the administrative exemption from overtime requirements.

The ABA said this conclusion "completely contradicts two of the division’s prior opinion letters addressing this exact issue." The group also said the decision was filed without seeking input from the mortgage or banking industry, according to a statement.

"For years, the banking industry has relied on the Department of Labor’s position that mortgage loan officers fall within the administrative employee exceptions to the Fair Labor Standards Act’s overtime requirements. The banking and mortgage industry has structured its employment and compensation practices with respect to thousands of employees on this previously-settled legal expectation," according to a statement from the ABA. "The sudden and dramatic reversal of course results in an unfair surprise to employers who have reasonably relied on the Department of Labor’s prior interpretations."