Editor’s Note: The Mortgage Mix is RISMedia’s biweekly highlight reel of need-to-know mortgage-industry happenings. Watch for it every other Friday afternoon.
– loanDepot has filed a lawsuit against West Capital Lending over trade secrets and contracts, as reported by National Mortgage Professional. loanDepot is alleging that West Capital orchestrated a large-scale employee raid and data theft campaign, which dates back to 2021. Specifically, the complaint alleges that West Capital “misappropriated confidential information, illegally poached more than 175 loan originators, and diverted customers using stolen data.” West Capital said in a statement that “our foundation is built on integrity,” it believes and upholds the “highest standards in compliance,” and that “upholding ethical practices isn’t just a policy; it’s part of who we are.”
– Rocket Companies announced a cut in employees following its recent acquisition of Mr. Cooper Group, according to National Mortgage News. The cut affects less than 1% of its workforce. The company said in a statement that the layoffs are in order to “streamline” the workforce and eliminate “overlapping roles.” Rocket completed a similar labor cut following its completed acquisition of Redfin back in July.
– A former loan officer has been found guilty for a multimillion-dollar mortgage fraud scheme and officially sentenced to 18 months in prison, as reported by Law360. Gary Bohn, who formerly worked for American Fidelity Financial Services, pleaded guilty for committing $10M in mortgage fraud through reverse mortgage and home repair fraud. He received a plea agreement, had his state license revoked in July 2024 and owes $300,000 in restitution.
– Transunion has released a report which warns against replacing the current tri-merge mortgage credit model with a single credit pull. Satyan Merchant, Senior Vice President, Mortgage and Automotive at TransUnion said that “A ‘single-pull’ environment creates significant risk that strong borrowers will lose access to credit while additional at-risk borrowers will find themselves in a mortgage they can’t afford. In the long run, that creates fresh risks for investors and threatens the safety and soundness of a mortgage market with tremendous taxpayer exposure.” Specifically, research shows a number of negative effects, including 31% of consumers experiencing a shift of more than 10 points (in either direction) in a single-pull environment.
– Fannie Mae CEO Priscilla Almodovar stepped down from the role, with COO Peter Akwaboah assuming her position. The abrupt exit was not explained in a press release from the FHFA. In addition, John Roscoe and Brandon Hamara have been promoted to co-presidents. The moves continue a shake-up at Fannie Mae and Freddie Mac that include FHFA Director Bill Pulte’s firing of Freddie Mac CEO Diana Reid in March.
