Mortgage lenders loanDepot and Movement Mortgage have agreed to end a one-year dispute over the poaching of employees, according to a document filed Friday in a district court in Delaware.
In June 2023, California-based loanDepot accused its competitor of damaging its business by hiring more than 25 of its employees in a three-month period. According to loanDepot, Movement’s actions in late 2021 and early 2022 resulted in “effectively crippling” several “now-depleted” branches. Movement aimed to take trade secrets and confidential information, loanDepot alleged.
After about a year, the companies agreed to a motion to dismiss the lawsuit with prejudice, meaning that the plaintiff, loanDepot, cannot refile the same claim in that court. The parties stipulated that each will bear its own attorneys fees and costs.
A representative at Movement Mortgage did not immediately reply to a request for comment, while a representative for loanDepot declined to comment. National Mortgage News first reported on the motion to dismiss.
loanDepot is the 16th-largest U.S. mortgage lender with $10.3 billion originated from January to June, down 6% year over year, according to Inside Mortgage Finance (IMF) estimates. The company had 1,615 sponsored loan officers and 219 active branches as of Monday, per the Nationwide Multistate Licensing System (NMLS).
loanDepot is followed on the IMF ranking by South Carolina-headquartered Movement, the 17th-largest lender in first half of this year. The data shows that the lender originated $10 billion in the period, up 0.4% year over year. Movement had 2,225 sponsored LOs and 448 active branches as of Monday.
Lawsuits accusing rivals of poaching have become more common in the mortgage industry amid increasing competition. For example, loanDepot has an ongoing dispute with CrossCountry Mortgage in New York, while Movement has a legal battle with Summit Funding.
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