CrossCountry allegedly made payments to Raleigh Realty for exclusive client referrals, amounting to $15,000 per month during 2021 and 2022. The suit details cases of directive communication from the brokerage's president, pressuring agents to avoid competing lenders. Although CrossCountry's EVP Shackelford is not named as a defendant, he is accused of fast-tracking the deal against company guidelines. Plaintiffs allege this arrangement caused them to miss better mortgage rates, claiming damages under RESPA and North Carolina laws. They cite a specific borrower's experience with higher interest rates attributable to the referral practices.
The lender allegedly paid Raleigh Realty $15,000 per month for client referrals in 2021 and 2022, violating company policy and RESPA guidelines.
Shackelford reportedly indicated that he expected about $500 per referral, putting pressure on agents at Raleigh Realty to direct clients exclusively to CrossCountry.
Plaintiffs seek damages under RESPA and North Carolina's Unfair and Deceptive Trade Practices Act, claiming they were denied lower mortgage rates due to the referral steering.
One borrower stated that they received a higher interest rate than they could have qualified for with another lender, illustrating the potential financial impact of the alleged steering.
Collection
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