Go Mortgage is settling a federal lawsuit against its former director of capital markets after accusing her of causing millions of dollars in damages in acts of corporate espionage.
The lender will pay Katie Chikonde an undisclosed amount to also settle her separate wage claims against the firm in a state court, according to her attorney. The ex-employee was accused of, among other actions, defaming Go Mortgage to counterparties and bungling its loan pipeline hedging.
“Go Mortgage has nothing but respect for Katie Chikonde’s hard work and valuable contributions to the company and our industry, as well as her integrity, professionalism, and character,” wrote Gary Kramer of Colorado Springs-based Gary Kramer Law, on behalf of Chikonde in a statement Wednesday.
The lender and an attorney for the company didn’t respond to requests for comment Wednesday afternoon. Chikonde, who Kramer said voluntarily resigned from Go Mortgage in July 2022, is listed as vice president and director of capital markets at Michigan-based Dart Bank since August 2022.
Chikonde caused Fannie Mae to temporarily suspend Go Mortgage’s seller-service number, preventing it from delivering loans, according to the complaint filed last July. She also allegedly shared false information about Go Mortgage with its investors and warehouse lenders.
The lawsuit in Ohio federal court also accused Chikonde of entering false information in Optimal Blue that wasn’t discovered for four months.
Her purported sabotage stemmed from dissatisfaction over the nonpayment of a bonus in 2021, according to case filings. Chikonde filed a wage claim lawsuit against Go Mortgage in February 2023 in Arapahoe County District Court, southeast of Denver.
The dollar amounts in dispute in both cases weren’t publicly available; the federal case docket shows a damage demand in excess of $75,000. The sides met for mediation in January, and first revealed their global settlement in a Feb. 29 status update.
Go Mortgage originated over $1.1 billion in mortgage loan volume last year through December, according to data from S&P Global. The lender counts 98 sponsored mortgage loan officers as of December 31, according to consumer Nationwide Multistate Licensing System records, and 26 active branches.
