Two dozen loan originators at The Federal Savings Bank (TFSB) recently recovered more than $773,000 in unpaid overtime wages, and more than $400,000 in attorney’s fees and expenses, after a federal court in New York denied the bank’s motion for summary judgment in a collective action under the Fair Labor Standards Act (FLSA).

The plaintiffs—loan officers working in the bank’s New York branch—alleged that TFSB misclassified them as exempt from overtime and failed to pay for hours worked beyond 40 per week properly. Borsellino PC was not involved in this case but has represented workers in the mortgage industry in other cases.  

Defendants Serve Offers of Judgment Totaling $773,087.73

Following the court’s ruling against the bank’s summary judgment motion, TFSB served Rule 68 offers of judgment on 24 plaintiffs, totaling $773,087.73. Each plaintiff accepted their offer, which included all claimed wages and interest, but excluded attorneys’ fees.

The court entered judgment in favor of each plaintiff accordingly.

$419,662.86 in Attorneys’ Fees and Costs Awarded

Plaintiffs’ counsel subsequently moved for recovery of their attorneys’ fees and litigation expenses. After reviewing the record, the court awarded a total of $419,662.86 in attorneys’ fees and costs—affirming the right of employees not only to recover their unpaid wages, but also to have their legal fees paid by the employer.

Overtime Abuse is Widespread in the Mortgage Industry

This case is just one example of how common wage violations are in the mortgage lending business. If you work or worked in mortgage lending, you may have a valid claim for unpaid overtime if:

• You regularly worked more than 40 hours per week
• You were paid a salary, draw, or commission, without overtime
• You were classified as exempt but did non-exempt work
• Your job title included Loan Officer, Mortgage Banker, Processor, or Underwriter

The FLSA protects you, and courts around the country continue to enforce those protections—especially when employers misclassify workers in high-pressure sales environments.

Contact Josh Borsellino, Overtime Attorney for Mortgage Workers

If you worked in the mortgage industry and believe you weren’t properly paid for your time, contact me today.

📞 Call or Text: 817.908.9861
📧 Email: josh@dfwcounsel.com

Free and confidential consultations. No fee unless we recover for you.

You worked hard. You deserve to be paid fairly.