Hundreds of E Mortgage Capital employees could join a wage lawsuit against the brokerage, after a federal judge granted conditional approval to certify a class. 

The federal complaint in Arizona accuses the lender of failing to pay overtime to numerous workers, from loan officers to processors to managers. An attorney for plaintiffs told National Mortgage News that the class, which covers EMC employees who worked overtime without compensation in the past three years, should be between 500 to 1,500 employees, with normally a 20% opt-in. 

That rate could still leave hundreds of workers suing the company in the Fair Labor Standards Act complaint originally filed last August. A federal judge Wednesday ordered E Mortgage Capital to compile a list of all of its employees by next Wednesday. 

Neither attorneys nor a spokesperson for the lender responded to requests for comment Thursday.

The Santa Ana, California-based brokerage has 970 sponsored mortgage loan originators and 39 branches nationwide, according to the Nationwide Multistate Licensing System. The lawsuit only seeks alleged overtime pay owed, compared to other FLSA lawsuits against lenders which also seek minimum wages, and it doesn't specify the scope of possible damages.

In a bid to stop class certification last November, attorneys for EMC suggested the complaint was overbroad, and that it covered various positions that are exempt and non-exempt under labor laws. The company also wanted potential class notifications to warn plaintiffs of potential litigation costs. 

U.S. District Judge Dominic Lanza sided with plaintiffs in those arguments, and clarified that plaintiffs are by law excluded from fee liability in FLSA lawsuits. 

E Mortgage Capital's troubles

The company last October agreed to a $669,000 settlement with state regulators to resolve claims it allowed unlicensed loan officers and processors to work on originations. Officials also accused the lender of "dishonest dealings" and failing to cooperate with inquiries. 

In reaching that agreement, EMC neither admitted or denied responsibility for the allegations. The company's chair and president then told National Mortgage News his firm would remain committed to full compliance with lending laws. 

E Mortgage Capital is also facing three pending Telephone Consumer Protection Act complaints in federal court, and has dismissed additional cases over spam calls in recent years. In the most recent TCPA filing, a consumer accuses the firm of sending him prerecorded voice messages and text messages over a preapproval for a different consumer.