Mortgage companies want the bonus back

Brookswood

Brookswood

Senior Member
Some mortgage companies want the hiring bonus they paid certain employees, returned to them. It seems the bonuses were actually loans that would be forgiven at a certain date in the future.

The company brought on veteran bankers from big mortgage shops, aided by an internal software program known as Golden Goose that identified people to hire and what signing bonus to offer them, people familiar with the matter said. Many bankers were handed hundreds of thousands of dollars upfront. The highest performing few got $1 million or more. The bonuses were typically structured as loans forgiven after two years.
Click to expand...
Apparently, the companies introduced performance requirements (not originally part of the loan), and when employees could not meet the requirements in the current lousy loan market, they were terminated. Since they had not completed the required two years, the companies demanded the loans be paid back.
I
 

Brookswood said:
Some mortgage companies want the hiring bonus they paid certain employees, returned to them. It seems the bonuses were actually loans that would be forgiven at a certain date in the future.


Apparently, the companies introduced performance requirements (not originally part of the loan), and when employees could not meet the requirements in the current lousy loan market, they were terminated. Since they had not completed the required two years, the companies demanded the loans be paid back.
I
Click to expand...
not much new .... many places offering hiring bonuses often have many ifs and buts attached to it and try not to pay it... some let people go before the required time is up...... always read the fine print and never count on money until in your hand.
 

Surely, they can't change the rules in the middle of the game!

They won't win any prizes, or court cases if they go there.

Mike.
 
Mike said:
Surely, they can't change the rules in the middle of the game!

They won't win any prizes, or court cases if they go there.

Mike.
Click to expand...


"or court cases if they go there."

Oh I don't know .... If the judge is invested / heavly invested in the financial business ?
 
Nothing new here....
All companies I worked for would take back bonuses if you didn't meet employment requirements during a set timeframe.
Not a big deal, just don't mess up.
What the employees should have done was take the bonuses and put them away in a money market fund until the probation period ended.
 
Brookswood said:
Some mortgage companies want the hiring bonus they paid certain employees, returned to them. It seems the bonuses were actually loans that would be forgiven at a certain date in the future.


Apparently, the companies introduced performance requirements (not originally part of the loan), and when employees could not meet the requirements in the current lousy loan market, they were terminated. Since they had not completed the required two years, the companies demanded the loans be paid back.
I
Click to expand...
As long as the policy was clear at hiring there's not much you can do.
 
hearlady said:
As long as the policy was clear at hiring there's not much you can do.
Click to expand...
that is the beauty of it........ a few long paragraphs with legal ease and many times the employee does not ask about performance goals and the other disqualifying possibilities.
I worked for a very large company that played this game often even notices that this or that policy changed written in ways to look benign and then find out later what it really meant.
 
Jeni said:
that is the beauty of it........ a few long paragraphs with legal ease and many times the employee does not ask about performance goals and the other disqualifying possibilities.
I worked for a very large company that played this game often even notices that this or that policy changed written in ways to look benign and then find out later what it really meant.
Click to expand...
Yes. It may be legal but dirty legal.
 

You must log in or register to reply here.

Back
Top