Amerisave: Failure To Pay Wages In Lawsuit, Accused Of Defamation

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Amerisave: Failure To Pay Wages In Lawsuit, Accused Of Defamation

Feb 7, 2023 | News | 0 comments

In a new lawsuit, 11 ex-employees accuse AmeriSave Mortgage Corp. of failing to pay their salaries, bonuses, and commissions as agreed when they were hired. In addition, the group claims the company initiated a defamation campaign against them after they were laid off in July 2022.

In early 2022, AmeriSave was developing a retail mortgage sales division in which part of the Atlanta-based mortgage lender’s strategy was hiring 200 loan officers to focus on the West Coast region, according to the class-action lawsuit filed in California.

According to the lawsuit, executives at AmeriSave allegedly promised during job interviews that they will navigate the challenging market with a $1.5 billion war chest.

The employees, however, say the layoffs occurred between one and three months after they began working at AmeriSave. Between July 15, 2022 and August 15, 2022, attorneys estimated approximately 140 employees separated from the company.

The former employees claim that AmeriSave failed to pay wages, bonuses, and commissions as promised.

Additionally, the lawsuit alleges that lender executives communicated with top industry recruiters to claim former employees failed to meet performance goals as well as making “derogatory entries” on the Nationwide Multistate Licensing System (NMLS) after the layoffs.

Further, the lawsuit claims that regulators should investigate the former employees because the LOs’ NMLS records indicate their termination was “for cause.”

According to the lawsuit, the defendants have committed fraud, breach of contract, negligence, intentional interference with prospective economic relations, and violation of the Warn Act, as well as defamation. Considering all 140 potential class members, the plaintiffs’ attorneys estimate that the total amount owed is at least $43.5 million.

Among the top mortgage lenders in the United States, AmeriSave is ranked 38. A report from Inside Mortgage Finance estimates that $12 billion of originations was made by the company in 2022, a decline of 62.2 percent from the previous year.