Skip to main content

Homestead Poaching Lawsuit Moved To Federal Court

Aug 22, 2022
Staff Writer

Suit, originally filed in New York State Court, alleges that Fairway stole one loan originator and enticed others.

A lawsuit filed by Homestead Funding Corp. in New York State Court alleging that Fairway Independent Mortgage Corp. had poached a high-earning employee and enticed several others to do the same has been transferred to federal court in the Northern District of New York at the request of Fairway’s attorneys.

The original suit, filed in June, alleged that Fairway paid Andrew Aiello, “a seasoned loan originator” who was bound by an employment agreement, a $600,000 signing bonus and promised him another $500,000 productivity-related bonus to leave Homestead.

According to the suit, the bonus would kick in if Aiello closed $200 million in loans in two years. The suit alleges that the high amount of closures required for Aiello to earn the bonus served as "a thinly veiled attempt to entice Aiello to recruit other loan originators from Homestead — who were also under contract."

The suit also sought a permanent injunction against Fairway to prevent it from poaching any more of Homestead’s employees. Homestead, according to the suit, notified Fairway in May that Aiello and all of its loan originators were bound by employment agreements that automatically renewed if they were not terminated at least 60 days in advance.

Homestead is seeking a minimum of $400,000 in damages.

Fairway denies Homestead’s claims.

According to court documents, the venue for the suit was changed because it is between citizens of different states and “the amount in controversy is greater than $75,000.”

Homestead’s principal place of business is Albany, N.Y., while Fairway, which was organized under Texas state laws, is principally located in Madison, Wis.

About the author
Staff Writer
Steve Goode was a staff writer at NMP.
Published
Aug 22, 2022
Co-Founder Mat Grella Terminated From NEXA

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024
Rocket's Tim Birkmeier To Retire

Birkmeier is bidding farewell after a 28-year career at Rocket Companies.

Mar 21, 2024
How NAR’s Settlement Impacts Homebuying

While the settlement's silver lining is that homes are expected to become more affordable, many uncertainties loom over the housing market.

Mar 19, 2024
NAR Reaches $418 Million Settlement

The association agreed to give home sellers the option of compensating agents.

Mar 15, 2024
U.S. Non-Bank Mortgage Lenders Surge Amid Industry Consolidation, Fitch Ratings Reports

As smaller players exit the market, scaled originators like UWM and PennyMac Financial dominate, but challenges persist with low origination volume and pressured margins amidst rising interest rates.

Mar 14, 2024