Key facts
- CrossCountry Mortgage sent cease-and-desist letters to at least 25 former loan officers, per HousingWire.
- The letters invoke a two-year non-solicitation window and demand thousands of dollars in payments.
- CCM's letter seeks repayment at 75 basis points per loan for loans it says violated the agreements.
- CCM declined to comment on the report.
- Consultant Paul Hindman said CCM was singled out for a practice that is common and widespread.
CrossCountry Mortgage 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 on Friday, November 6, 2026. The top-five mortgage lender declined to comment on the story.
Non-solicitation provisions restrict departing employees from taking a former employer's clients, referral partners or staff. Attorneys and executives said 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 stays compressed and margins stay thin.
CCM's letter seeks repayment calculated at 75 basis points per loan for loans the loan officers originated that allegedly violated their agreements. Attorneys told HousingWire the figure likely represents a rough estimate of the company's lost economics.
Paul Hindman, an industry consultant whose clients include CCM, said the lender was singled out for a practice that is common and widespread, and that sending notices differs from pursuing a legal case. Colgate Selden, a founding member of the Consumer Financial Protection Bureau and a shareholder at Baker Donelson, said loan officers must be careful about the agreements they sign with a new company.
Alan Pezeshkian, president of House America Financial, said his company has such a clause but has not enforced it. Brendan McKay, owner of McKay Mortgage, argued originators hold the customer relationship, though he conceded the picture changes when the company supplied the lead.
James Brody, managing partner at Brody Gapp, said enforcement can turn on who initiates contact and how the provision is drafted, with outcomes varying by state. Todd Bitter, national director of sales for NEXA Lending, said the company changed its contracts after new hires flagged language claiming ownership of their databases for 12 months after departure.