Vega Economics’ experts Charles Grice and Lisa Murphy were retained by defense counsel in a case between two mortgage lenders. The plaintiff lender alleged that defendant targeted and unlawfully poached loan officers and staff from its operations, using trade secrets and proprietary customer information brought by the loan officers to capture and divert customer relationships.
Mr. Grice, supported by the Vega team, analyzed the mortgage origination process and recruitment practices and concluded that it is standard industry practice for loan originators to maintain contact lists throughout their careers and take these lists when changing employers. He discussed relevant industry customs in a highly competitive labor market and the standard practices regarding the acceptance of contact lists from incoming loan officers. Additionally, he analyzed whether borrowers who followed their loan officers did so willingly, and the loans were not considered "diverted" business.
Ms. Murphy relied on her experience as a banking regulatory and compliance professional to analyze employment contracts between the loan officers, employee handbooks, and whether the opposing lenders practices were consistent with the TILA. Ms. Murphy concluded that the opposing parties loan office’s compensation practices were illegal under TILA and the employment contracts were inconsistent with internal policies.
For more information about retaining Charles Grice or Lisa Murphy as an expert, contact us at experts@vegaeconomics.com.