Law and legal issues

A competitor is accusing the lending giant of operating a "transition desk" dedicated to poaching loan officers and stealing trade secrets.

At least 40 former employees are in the class action, which is made up of former loan officers from Pennsylvania and New Jersey.

Workers who switched companies have disparaged their former employer to its homebuilder partners, the suit claims.

Chicago businessman David Izsak grifted several financial institutions out of $4 million by taking out phony home loans and other types of credit.

The Justice Department and the Consumer Financial Protection Bureau are suing a real estate developer over an alleged bait-and-switch land-sale scheme near Houston. The developer used TikTok and other social media sites to lure Hispanic immigrants into predatory loans, the government alleges.

Both past and present customers were impacted by the data breach.

Lawyers for the plaintiff maintain the companies should have been on notice of inadequate security measures after a reported data breach in 2022.

A cyber attack in late 2021 affected over 4 million consumers across three companies.

Alleged screenshots show the lender in text messages and emails encouraging the theft and dissection of the competitor's profit and loss model.

The mortgage giant alleges that District Lending flouted its 2021 ultimatum by sending at least 84 loans to either Rocket Mortgage or Fairway Independent Mortgage Corporation. It's seeking to recoup over $400,000.

A Connecticut-based couple sued the bank and Cavanaugh Appraisals, LLC for denying them a refinance in 2021 because of racial bias.

While plaintiffs allege there were misleading executive statements, the megalender pins early 2021 trading volatility on social media users briefly encouraged by the rocket emoji.

The magistrate ordered a fine and possible detainment for a former company president now working for another lender.

The judge also sealed a document in the lawsuit the AARP Foundation joined but the defendants still must produce fee codes in the proposed class action.

The lender has sued 59 former employees in state court to recoup over $4.3 million in combined sign-on bonuses.

The former mortgage professionals say they routinely worked nights and weekends in excess of 60 hours a week.

Brokerage giants, reeling from a billion-dollar judgment against them a month ago, face another major trial next year.

In 2019, the vendor accused the California-based originations and servicing shop of copying its mortgage processing system.

To date, all of the lawsuits accuse the servicer of failing to secure and safeguard customers personal identifiable information.

The case is the second filing in West Virginia this year involving similar fees, as courts and regulators nationwide look to crack down on the servicing practice.