How a non-competitive ban will affect the mortgage industry

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July 9 President Joe Biden ordered v Federal Trade Commission completely prohibit or restrict the employer’s use of non-competitiveness. Industry veterans and lawyers say that if such a rule is implemented, it could change the way the mortgage industry recruits and retains talent for the next decade and beyond.

If the Biden administration corrects its threat, some loan officers, account managers and marketing personnel bound by such agreements can change jobs without fear of potential litigation from their employer.

The overall gist is that the impact of a rule outlawing non-competitive participation will be negligible, and most likely to be felt by non-proponents who are more likely to be bound by non-competitiveness. agreement– said the lawyers and heads of the credit department.

A non-competitor rarely targets creditorsalthough there are times when LO signs a waiver of participation in compensation related to it, said Kevin Peranio, chief credit officer at PRMG

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