Exclusive: CrossCountry Mortgage demands payment from former LOs, invokes 2-year non-solicitation

CrossCountry Mortgage's move to demand payment from former loan officers is a significant development in the mortgage industry. The company's invocation of a 2-year non-solicitation clause and demand for 75 basis points for each refinanced loan on former customers suggests that it is actively working to protect its business interests. This is likely a response to the high volume of loan officer defections and mortgage company consolidations that have occurred in recent years.

The fact that CrossCountry Mortgage is targeting former loan officers with these demands implies that the company is concerned about the potential for those individuals to poach its customers or disrupt its business. This is a common challenge in the mortgage industry, where loan officers often have close relationships with customers and may be able to influence their decisions about where to obtain financing. By invoking the non-solicitation clause and demanding payment, CrossCountry Mortgage is attempting to mitigate the risk of losing business to former employees.

What's next to watch is how this plays out in terms of industry-wide practices and potential regulatory implications. Will other mortgage companies follow CrossCountry Mortgage's lead in invoking non-solicitation clauses and demanding payment from former employees? How will this impact the mobility of loan officers and the ability of companies to compete for talent? Infrastructure investors and industry observers will be watching closely to see how this trend develops and what it may mean for the future of the mortgage industry.

Originally reported by housingwire.com. InfrastructureNews adds analysis for real estate & property readers.