Guild vs. CrossCountry Lawsuit Comes To Standstill – NMP Skip to main content

Guild vs. CrossCountry Lawsuit Comes To Standstill

Dec 16, 2022
dismiss
Associate Editor

Magistrate judge recommends CrossCountry file a motion to dismiss.

KEY TAKEAWAYS
  • Guild alleged that CrossCountry conspired with three Guild employees to poach the entire Kirkland, Wash., branch.
  • Guild also claimed these employees conspired to divert loans in process at Guild to be closed at CrossCountry instead.
  • CrossCountry may be able to dismiss this action on the grounds that it and Guild share California citizenship.
  • Guild has yet to respond whether it will refile a complaint in California. 

The lawsuit between Guild Mortgage and CrossCountry Mortgage that involved some messy pranks between employees, may soon come to a close. The magistrate judge for the Western District of Washington at Seattle recommended that CrossCountry file a motion to dismiss, but it must be signed off by a judge before the case is officially thrown out.

In October 2021, Guild alleged that CrossCountry conspired with three Guild employees to persuade other Guild employees to “misappropriate nearly all of Guild’s Kirkland, Washington branch, including dozens of employees [and] massive amounts of confidential business and client information.” In the complaint, Guild also claimed these employees conspired to divert loans in process at Guild to be closed at CrossCountry instead.

CrossCountry may be able to get the lawsuit dismissed on the grounds that both it and Guild share California citizenship, so diversity of citizenship is incomplete and thus the Seattle court lacks subject matter jurisdiction. Guild does not oppose dismissal, but seeks recovery of attorney’s fees based on CrossCountry’s failure to uncover its California citizenship until 10 months into the litigation.

The court granted in part CrossCountry's motion to seal and recommends that its motion to dismiss be granted, and denied Guild's motion for sanctions. 

The court also ordered CrossCountry to provide a complete list of its states of citizenship or pay $25,000 in sanctions within 30 days of the date the court’s report and recommendation are adopted.

Guild has yet to respond as to whether it will refile a complaint in California.

About the author
Associate Editor
Katie Jensen is a mortgage news reporter at NMP.
Published
Dec 16, 2022
Garg Claims Majority In Better Fight, Board Poised To Honor Vote

Founder says he secured more than 51% of voting power to remove five directors, pending confirmation by a third-party inspector

Oct 01, 2026
Rocket Makes VantageScore Its Default After Testing Finds Borrower Savings

After four months of testing, Rocket will make VantageScore 4.0 its preferred model for eligible retail loans while keeping both scoring options available to brokers

Sep 29, 2026
CHLA: More Freddie Mac MBS Buying Could Narrow Mortgage Spreads

Trade group estimates greater Freddie participation could compress spreads another 10 to 12 basis points as Fannie has taken the lead in GSE mortgage-bond buying

Sep 23, 2026
Early Loan-Limit Race Splits Into Three Tiers

Lenders are now offering $845,000, $847,440, or $850,000 before FHFA sets the official 2027 limits

Sep 23, 2026
Better, Garg Clash Over Claimed 46% Shareholder Support

Better disputes its former CEO’s preliminary consent count as the two sides trade accusations and an Oct. 2 target date approaches

Sep 23, 2026