A federal judge has denied a lender’s motion to dismiss a lawsuit alleging a loan originator is owed millions of dollars.
Joshua Hausfeld started working in March 2006 for Love Funding Corp., where he was hired on as an underwriter analyst.
In April 2010, he was promoted to loan originator and signed an employment agreement. He earned a salary plus commission.
Hausfeld claims he was very successful as an originator at the Washington, D.C.-based company, moving several commercial real estate loans to underwriting and closing.
The contract allowed Love Funding to modify its compensation policy.
Hausfeld, himself, functioned as an at-will employee whose employment could be terminated at any time with or without cause.
On May 6, 2013, when Hausfeld says his pipeline was set to earn him $4 million in commissions, he was terminated.
Hausfeld claims that Love Funding terminated him in order to avoid a seven-figure payout.
While many of the loans have closed since the termination, Hausfeld alleges Love Funding has refused to pay commissions and deferred compensation totaling more than $2 million.
So he filed a lawsuit in the Circuit Court for Montgomery County on Dec. 13, 2013.
The complaint alleges violations of the Maryland Wage Payment and Collection Law Md. Code Ann., Lab. & Empl. § 3-501. The defendant also allegedly breached its contract with Hausfeld.
The case was removed to U.S. District Court for the District of Maryland, and Love Funding filed a request for dismissal.
The judge denied the dismissal request on April 18. An alternative request to transfer venue was also denied.
