CCM’s non-solicitation push tests limits of lender control

CrossCountry Mortgage’s enforcement of non-solicitation agreements is emerging as a test case for how far lenders will go to protect production in a higher-for-longer rate environment — a topic that has divided the industry. The top-five mortgage lender has sent cease-and-desist letters to at least 25 former loan officers, invoking a two-year non-solicitation window and demanding thousands of dollars in payments under their employment agreements, HousingWire reported Friday. CCM declined to comment on this story. Non-solicitation provisions, which restrict departing employees from taking the former employer’s clients, referral partners or staff, have long been part of mortgage recruiting playbooks. But attorneys and executives say many lenders – mainly smaller ones – do not enforce them because litigation is costly and proof can be difficult. That calculation may be shifting as origination volume remains compressed, margins stay thin and experienced producers become more valuable in a smaller market. “With this high-rate environment continuing, top LOs will still be highly sought after, so they have to be careful on what type of agreements they enter into with a new company, what t...