Paul Williams at Foreclosurepedia has been rightly saying for many years that controlled vendors are “treated” like employees and they should be treated as employees and NOT as independent contractors. On March 17th, a U.S. Federal District Court entered a 50-page court ruling in the Bowman v Field Asset Services case wherein the court declared that:
“the overwhelming weight of the evidence supports a finding that FAS retained and, more often than not, actually exercised a right to control the manner and means of the vendors’ work. While some of the secondary factors for evaluating proper classification fall in FAS’s favor, they cannot overcome the powerful evidence of control that establishes that the vendors are employees as a matter of law.”
The bottom line is that Mortgage Order Mills (MOMs) … and others … are exercising too much control over their field service representatives. The U.S. federal courts have ruled in two federal cases that the MOMs could not overcome the powerful evidence of control that establishes that the vendors are employees as a matter of law. There are several other Rulings coming down the pike over the next month or so, the largest of which will be the Vinson v MCS on nearly identical issues.