Judge Dismisses Guild Lawsuit Accusing CrossCountry Of Poaching – NMP Skip to main content

Judge Dismisses Guild Lawsuit Accusing CrossCountry Of Poaching

May 23, 2023
Lawsuit gavel

Case was dismissed without prejudice in Seattle but could be refiled in California.

A federal district court judge in Seattle dismissed a lawsuit filed by Guild Mortgage Co. LLC that accused CrossCountry Mortgage LLC of poaching an entire branch office in Kirkland, Wash.

Judge John C. Coughenour dismissed the lawsuit without prejudice, which means Guild could refile an amended complaint if it chooses. His order was signed on Feb. 9.

The dismissal follows a report and recommendations submitted to the court in December by U.S. Magistrate Judge Michelle L. Peterson, who recommended the court grant CrossCountry Mortgage’s motion to dismiss the case, deny Guild’s motion for sanctions, and order CrossCountry to disclose “the states in which it has citizenship or else by sanctioned $25,000.” 

While neither Guild nor CrossCountry objected to the dismissal, both objected in part to the recommendations, with Guild arguing that the court improperly denied its motion for sanctions, while CrossCountry argued that it is improperly being required to disclose the states in which it has citizenship. The court overruled both objections.

The lawsuit was originally filed in October 2021, with Guild alleging 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 the employees conspired to divert loans in process at Guild to be closed at CrossCountry instead.

CrossCountry was able to get the lawsuit dismissed on the grounds that both it and Guild share California citizenship, and thus the Seattle court lacks jurisdiction. Guild did not oppose dismissal, but sought to recover its attorney’s fees based on CrossCountry’s failure to reveal its California citizenship until 10 months into the litigation.

Following the ruling, CrossCountry had 30 days to submit its citizenship information. According to court documents, CrossCountry submitted a corporate disclosure statement on Feb. 23.

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

About the author
David Krechevsky was an editor at NMP.
Published
May 23, 2023
Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Oct 02, 2026
Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Oct 01, 2026
Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Sep 29, 2026
Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Sep 25, 2026
Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Sep 25, 2026
Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Sep 23, 2026