Mortgage Lender Demands Refinancing Fees From Ex-Staff
The firm seeks 75 basis points per loan following allegations that former employees improperly refinanced existing clients.
Updated on Oct. 31, 2026 in Residential
Live Poll
Should former employees be legally restricted from contacting clients they served at their previous job?
CrossCountry Mortgage has issued cease-and-desist letters to two former loan officers, alleging they improperly refinanced loans for former clients. The company is seeking financial repayment of 75 basis points per loan, with recipients facing a ten-day window to respond.
Why it matters
This dispute highlights the complex contractual obligations and non-solicitation agreements that often govern loan officer transitions. For homeowners, it underscores that refinancing relationships are subject to internal industry disputes that can influence how lenders pursue compensation for lost business.
CrossCountry Mortgage is seeking a 75 basis point repayment on refinanced loans. This totals $14,288 for $1.9 million in refinanced volume and $3,465 for a $462,000 loan.
The players
CrossCountry Mortgage
A national lender that provides home purchase and refinancing loans to household consumers.
Chad Barris
A former loan officer who previously managed mortgage financing for residential clients.
Ryan Devore
A former loan officer who previously managed mortgage financing for residential clients.
The details
The repayment demands stem from allegations that former loan officers refinanced borrowers they served while under contract with the lender. By applying a 75 basis point assessment, the firm calculates potential damages based on the volume of those specific loans. This type of corporate action is often a precursor to litigation when former employees are accused of violating non-solicitation clauses to capture recurring business.
Timeline
Chad Barris concluded his employment with CrossCountry Mortgage on April 12, 2025.
Ryan Devore concluded his employment with CrossCountry Mortgage on April 15, 2026.
The lender issued the cease-and-desist letters on October 29, 2026.
Recipients have 10 business days from October 29, 2026, to provide a response.
Money Landscape
This dispute reflects ongoing debates surrounding the enforceability of non-solicitation employment agreements in the mortgage industry. The company is following a standard corporate pattern of enforcing these contracts to protect its customer base and recover revenue from departed staff.
This development reminds homeowners that their loan officer may be bound by restrictive covenants that could impact the refinancing process. If you are considering switching lenders or following a former loan officer, consult with a legal or financial professional to understand your contract's terms.
The takeaway
This case serves as a reminder to review any documentation provided by your mortgage professional regarding their firm's policies. If you are in the midst of a mortgage transaction, ensure you have written confirmation of all terms and potential fees from your current lending institution.
Further reading
For broader context on how lender practices affect the home-financing process, visit Residential.
Source note: This article includes information reported by HousingWire.
Live Poll
Should former employees be legally restricted from contacting clients they served at their previous job?
