Exclusive: CrossCountry Mortgage demands payment from former LOs, threatens litigation
Documents obtained by HousingWire point to some $2.3M in refis for two LOs and demand total repayment of more than $17K
CrossCountry Mortgage's aggressive pursuit of payment from former loan officers may send a chill down the spines of industry professionals. The company's actions, as revealed by HousingWire, suggest a strict enforcement of its employment contracts. According to documents, two former LOs are being asked to repay over $17,000 related to $2.3 million in refinanced loans.
This move may be seen as an effort by CrossCountry Mortgage to recoup costs associated with loan originator training and recruitment. In the mortgage industry, it's common for companies to require LOs to repay certain expenses if they leave the company within a specified timeframe. However, the scale of these demands may raise questions about the company's policies and their potential impact on employee turnover and retention.
As the industry continues to navigate a shifting landscape, it's essential to watch how this situation unfolds. Will CrossCountry Mortgage pursue litigation against the former LOs, or will the parties reach a settlement? Additionally, industry professionals will be monitoring how this affects the company's reputation and relationships with current and future employees. The potential consequences for the mortgage industry as a whole, particularly regarding employment contracts and LO mobility, are also worth keeping an eye on.
Originally reported by housingwire.com. LeaseNews adds analysis for real estate & property readers.