The loanDepot drama continues. Last week, the nation's second-largest nonbank retail mortgage lender was sued by former COO Tammy Richards, who alleges that
company founder and CEO Anthony Hsieh pushed loan officers to cut corners to close 8,000 loans without proper documentation.
This week, original reporting by HousingWire Senior Reporter Georgia Kromrei found that loanDepot filed suit against seven former employees in May, alleging that they stole client lists and funneled business away from the company to CrossCountry Mortgage. The ex-employees then filed a separate California labor claim, alleging that loanDepot violated Regulation Z regarding LO compensation.
In August, loanDepot and the defendants agreed to engage a third-party computer forensic expert, to investigate whether the loan officers made off with client lists and improperly used intellectual property. That investigation is ongoing and could last for quite a while.
Employee turnover and employee poaching happens in mortgage like anywhere else, but noncompete and non-solicitation agreements can complicate things. In July, President Biden ordered the FTC to fully ban or limit an employer's use of noncompetes, but non-solicitation of individuals or teams is another matter.
Today's pending home sales came in at a big beat of estimates, running at 8.1% for this report. More importantly, this data line looks just right. HW+ Premium Content
Computershare Loan Services (CLS) addresses topics around the ever-evolving servicing landscape. With deep roots in default sub-servicing and proprietary loss mitigation technology, CLS evolves as the market changes. Learn how they protect clients' portfolios. Watch Now!
HW+ Managing Editor Brena Nath and Black Knight's Managing Director Rob Kessel discuss Black Knight's MSR platform that helps lenders best price loans. Presented by Black Knight
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