UWM sued for retaliation, sexual harassment

Two former United Wholesale Mortgage underwriters are suing the industry giant for retaliation, sexual harassment and other violations related to the firm's return-to-work during the coronavirus pandemic. 

Jackson and Kassandra Memmer, residents of Genesee County, Michigan, are also accusing UWM of Fair Labor Standards Act violations in two separate complaints. Jackson, a transgender man, claims he was fired over a probe conducted while he was on paternity leave. Kassandra said she quit over health concerns when the firm wouldn't let her work remotely while pregnant.

The lawsuits appear to be the first federal civil suits about UWM's controversial handling of pandemic health and safety protocols, in which the company was fined over. It also follows a workplace complaint from another former employee, which has drawn scrutiny from the National Labor Relations Board. The Memmers filed complaints with the Equal Employment Opportunity Commission, which issued them individual rights to sue in January. 

A spokesperson for UWM said the company doesn't comment on pending legal matters. An attorney for the Memmers said Jackson's suit, filed this week, would be amended soon. 

Both Jackson and Kassandra were hired as conventional mortgage underwriters in late 2019. At an unspecified time, Kassandra said she was sexually harassed by a male broker, who started to contact her after she sent "U-Snaps" messages to him for work purposes.

"The broker started contacting her via e-mail and hitting on her, stating that she was too pretty to be an underwriter and that he was going to tell her CEO Mat Ishbia to make her a model for the company," the lawsuit said. 

Kassandra told a supervisor, who allegedly told her to "laugh about it and forget it." The incident was never reported to the company, the suit claims.

In May 2021, Kassandra told the company she was pregnant, and gave UWM a doctor's note outlining her leave of absence for the health of her unborn child. While Kassandra's team lead approved the leave, other supervisors allegedly rejected her doctor's note and told her UWM is not a "work from home company."

UWM in July 2021 issued an ultimatum for workers to return to the office, and not returning would allegedly count as an automatic resignation. Kassandra quit when she wasn't allowed to work from home, and claims she did not receive her final bonus for files completed in June. 

Jackson returned to work that July despite concerns over UWM's COVID safety guidelines, according to his complaint. He took paternity leave Nov. 13, 2021. Upon his return on Nov. 29, 2021, Jackson met with two supervisors who informed him of an investigation into clearing conditions with appraisals, a probe conducted during Jackson's leave, he said. On Dec. 2, 2021, Memmer was allegedly fired over the investigation, and didn't receive a $5,000 bonus he earned in November. 

Both suits accuse UWM of failing to pay both minimum wages and overtime wages. Kassandra described putting in extra hours of work because of the firm's "Rise and Grind" mantra in which employees would either arrive to work early or stay two hours later without compensation. 

Kassandra's complaint seeks $250,000, while Jackson's suit asks for $100,000, according to federal court documents. The counts against UWM across both lawsuits include alleged hostile workplace environment and Americans with Disabilities Act violations. 

Numerous mortgage professionals have sued their former workplaces for FLSA violations, some of which have reached settlements with lenders. Other mortgage companies are also facing accusations of discrimination from both former employees and prospective borrowers.