Strained Relationships Are Likely When Family Members Work Together

Strained Relationships Are Likely When Family Members Work Together

Hiring family members brings a lot of ethical baggage.

BY DAVE HERSHMAN | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL

Many managers in the mortgage business are running small businesses. Others work for large mega-corporations. In either case, there will be situations in which you will be considering the hiring of family members. There are two major considerations with regard to the employment of family and it is important to fully understand both.

First, what are the legalities of supervising family? If you are working for a larger corporation, it is likely that the company will have rules regarding the hiring and/ or supervision of family. There are ethical and logistical considerations that come into play and therefore are good reasons for these restrictions. For example: An underwriter may be underwriting files that are originated by a family member. A branch manager may have to decide who is going to get certain leads and be accused of favoritism.

The branch manager may have to take disciplinary action against a family member—perhaps because their performance is not up-to-par.

Secondly, even if there are not personnel rules regulating the hiring or supervision of family, the same considerations will come into play if you are running your own business. There is no doubt that living together and working together can put special pressures on the relationship. It is important for each family member to have clearly defined roles—whether you are running a business together or one of you is supervising the other.

MARITAL BLISS?

Though less frequently than the real estate industry, it is not unusual for there to be a “husband and wife” team of loan officers. Or perhaps a loan officer is supported by a spouse as a processor or assistant. Again, company rules may vary regarding the ability to accommodate these situations. It is also imperative that the family members do their job well. If the family member is a loan officer and excels, there is no need for disciplinary action.

The real problem starts if they are not doing their job well and you need to hold them just as accountable as any other loan officer. As a matter of fact, you may need to hold them “more” accountable so you will not be accused of favoritism. The mortgage business brings great opportunities to those who develop careers within the industry. There is no reason not to bring these opportunities to family members who are both qualified and will take advantage of the situations presented.

If they do not fit this description, you must pass on the opportunity to hire them. And be careful how you conduct yourself if there are other employees involved. If you supervise them directly, consider appointing a third-party to make decisions thatwill affect your relative directly.

Dave Hershman, senior vice-president of sales for Weichert Financial Services.