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 request for 75 basis points for each refinanced loan on former customers suggests that it is actively working to protect its business interests. This is not surprising, given the highly competitive nature of the mortgage market and the importance of customer relationships in generating repeat business.

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. This is a common challenge in the mortgage industry, where loan officers often have close relationships with their clients and may take those relationships with them when they leave a company. By enforcing its non-solicitation clause, CrossCountry Mortgage is attempting to prevent former loan officers from soliciting its customers and to maintain control over the refinancing process.

What's next to watch is how this plays out in terms of industry reaction and potential litigation. Will other mortgage companies follow CrossCountry Mortgage's lead in enforcing non-solicitation clauses and demanding payments from former employees? How will this impact the mobility of loan officers and the ability of companies to attract and retain top talent? Asid readers should keep an eye on this story as it develops, as it has implications for the broader mortgage industry and the way companies approach customer relationships and employee mobility.

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