Newrez is asking a Pennsylvania federal court to throw out OneTrust Home Loans’ current counterclaims.
The two lenders have been sparring through authorized filings following the departure of James Hecht, former head of manufacturing at Newrez, and a handful of executives to OneTrust within the first half of the 12 months.
Newrez has accused Hecht, OneTrust’s CEO, of being a mastermind behind an elaborate ruse to raid workers from the Pennsylvania-based firm and steal commerce secrets and techniques.
In response to Newrez’s litigation, OneTrust accused Newrez of unfair competitors, tortious interference with contract, and defamation. Specifically, Newrez has made it onerous for OneTrust to recruit future workers, the San Diego-based firm claims.
The lender in its counter complaint additionally alleges that Newrez has had a “love and hate” relationship with its retail channel, which it purportedly tried to promote twice.
Newrez notes in a submitting June 5 that OneTrust has “failed to state any declare upon which reduction could be granted.”
It additionally added that over 70 Newrez workers (and counting) have truly transitioned to OneTrust because the departure of Hecht and others, which has resulted “in substantial loss to Newrez.”
“OneTrust lobs unwarranted allegations of wrongdoing premised on Newrez bringing this lawsuit in opposition to OneTrust and obscure, speculative allegations of defamation in opposition to Newrez,” the current submitting reads.
The mortgage lender goes on to take aside the claims made by its competitor, noting the “counterclaims include conclusory allegations of illegal conduct however lack any…factual substance.”
OneTrust’s unfair competitors declare relies upon drastically on Newrez submitting the swimsuit in opposition to it, alleging it was executed for improper functions and to unfairly compete in opposition to it. Newrez’s current submitting argues this “isn’t the kind of conduct that helps an unfair competitors declare [in Pennsylvania.]”
Additionally, OneTrust’s tortious interference of contract declare alleges Newrez is “stopping the departure of Newrez workers who search higher job alternatives with OneTrust.” But the Pennsylvania-mortgage lender and servicer argues this declare “consists of nothing greater than conclusory allegations and fails to particularly establish what contracts — present or potential — with which Newrez allegedly interfered.”
Newrez does admit, nevertheless, that round February 2024 OneTrust entered an employment contract with a former Newrez worker. She was going to be a supervisor however finally opted to not work at OneTrust due to worry of litigation.
“This particular person resigned her place with OneTrust, and, as a substitute, joined a competing mortgage servicer,” the submitting says.
Joshua Eskine, founding father of OneTrust Home Loans, stated in a press release Thursday the corporate absolutely stands behind the “information and claims we set forth.”
“[We] will forcefully reply to Newrez’s baseless movement sooner or later within the litigation the place the reality as we defined it can prevail.”
Meanwhile, a spokesperson for Newrez stated the corporate doesn’t “touch upon energetic litigation.”
“However, this submitting reiterates our dedication to defending our firm’s pursuits, values, and popularity, and we are going to vigorously pursue all authorized cures accessible to us,” he added.
Earlier this 12 months, Newrez reasserted its dedication to retail with an government noting that it’s “100% dedicated to the distributed retail channel.” They additionally highlighted that “connecting our servicing portfolio and our servicing leads on a localized foundation is admittedly the differentiator on how we join with our prospects.”
Speaking of servicing, Newrez finalized the acquisition of Computershare Mortgage Services and affiliate Specialized Loan Servicing LLC in early May.
Real property funding belief Rithm Capital Corp, dad or mum firm of Newrez, purchased the corporate for shut to $720 million as a way to additional broaden its servicing presence.
The integration of Computershare provides $149 billion in unpaid principal stability to the corporate. This consists of $104 billion in third-party servicing to Newrez’s portfolio, the corporate stated in a current press launch
The New York-based firm posted web revenue of $261.6 million, equal to 54 cents per share within the first quarter. The mortgage originations and servicing section at Rithm, the dad or mum firm of Newrez, introduced in $311.9 million in web revenue throughout the quarter as mortgage manufacturing and honest worth of MSRs each improved.
