On today’s Lykken-on-Lending radio show Dave Souders, a partner at Weiner Brodsky Sidman and Kider, provided some things for a Loan Officer (LO) to keep in mind as he or she moves from one mortgage company to another. He said most moves have unique circumstances, but that in all cases a LO should make sure they are very much aware of and are complying with the terms of their existing employment agreement. This document could address what the company says you can and cannot take with you leave, like your customer data base, prior customer loan information, or your roll-a-dex of contact cards. He thought every company to which a LO moves should be aware if the restrictions contained in his or her prior company employment agreement as well. The new company will likely be involved in any litigation which may arise. Dave said that LOs who do not abide by the terms of their employment agreement have been pursued for damages by their prior employer and have even been pursued by the OCC. Branch managers who are negotiating with a new company to move their team of originators need to be mindful of State laws regarding duty of care. Managers employed who are negotiating to take originators with them to another company may be in violation of their duty to the company they are leaving. Dave hopes to join the show again to answer more specific questions about this subject. Please let us know if you have legal concerns about making a change from one mortgage company to another.
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