Details regarding the terms are sparse from a notice filed by Lower May 16, however, it wraps up litigation over Residential allegedly poaching employees that Lower acquired via its Thrive Mortgage acquisition. The suit was pending for less than three months prior to settlement.

The original complaint filed by Lower in March accused Residential Wholesale Mortgage of "aiding and abetting" several of its employees in poaching 17 workers, allegedly causing the company "irreparable harm." The Ohio-based company was seeking $75,000 in damages.

Two of Lower's former employees, who purportedly orchestrated the departure, are still employed with RWM, a check of the Nationwide Multistate Licensing System shows.

Both parties did not immediately respond to a request for comment.

Lower has moved to also sue New American Funding over similar claims in February, though that litigation is still pending as of June 11.

Lower's complaint claims its former branch manager, Andrew Steven Kolmeier, and New American Funding "colluded...to solicit 12 other Lower employees, whom Kolmeier supervised, to leave Lower and join NAF – which they all did on the same day," Lower claims. The employees were also originally brought onboard via the Thrive Mortgage acquisition.Most recently, NAF, filed a motion to dismiss the suit pegged against it with prejudice because the firm claims Lower has "failed to allege specific facts that would be sufficient to plausibly suggest the existence a trade secret, any act of misappropriation, or any resulting harm under the Defend Trade Secrets Act," a filing from May 19 states.

The two complaints filed against NAF and RWM show that, combined, at least 30 Thrive Mortgage employees left to Lower competitors at the beginning of the year. 

The purchase of Georgetown, Texas-based Thrive was expected to boost Lower's production. In 2023, Thrive originated nearly $1.42 billion in loans, while Lower originated $1.88 billion, according to data from Modex.When the acquisition was announced, Lower CEO Dan Snyder said his company was "building a better approach to mortgage" and added, "Thrive is an award-winning, national lender with the same belief, and we're excited to bring them onto our platform." However, the recent suits suggest there may be some retention challenges. 

Mortgage stakeholders, including former Lower Chief Growth Officer Amir Syed, have publicly criticized the mortgage lender for lodging litigation against Thrive members departing the firm.

"These filings, which are part of the public record, spark important industry-wide conversations about leadership, integrity, and long-term trust. It's a conversation we must keep having — openly, constructively, and without fear," Syed said in a previous interview.