A former loan officer at Guaranteed Rate (G-Rate) has sued the lender and two managers for allegedly discriminating against her on the basis of gender, failing to compensate her equally to male coworkers with similar performance and subjecting her to sexual harassment. In response, the lender said it’s conducting a detailed investigation into the claims.

Megan McDermott has also alleged that someone at the Chicago-based lender accessed her business Facebook profile without authorization and used her brand and referral network to secure business after her resignation. G-Rate replied to emails as if she was still an employee and sent customers mailers with her name and National Multistate Licensing System (NMLS) number in January and March 2023, she claims.   

McDermott joined G-Rate when the lender acquired Superior Mortgage in 2012, and resigned in November 2022.

In a lawsuit filed in late February in New Jersey, she accused G-Rate, Joseph Moschella and Jon Lamkin of violating New Jersey laws regarding discrimination, equal pay and unfair competition. She also included allegations of breach of contract, misappropriation of likeness and tortious interference with prospective contracts.

McDermott’s attorney Joshua Boyette, a partner at Swartz Swidler LLC, wrote to HousingWire that the case illustrates that even when “the pay appears to be distributed fairly and based on objective criteria, companies can still use practices such as retention bonuses or the unfair allocation of opportunities to perpetuate gender-based pay discrimination.”

Added Boyette: “One reason for the stubborn persistence of pay inequity is that in order to ensure you’re being paid fairly, you first need to know you’re not being paid the same as everyone else — and a company that is willing to engage in pay inequity is also going to be the company least likely to engage in pay transparency.”

A spokesperson for G-Rate said in an emailed response that the company “recently received” a copy of the complaint and will conduct a “detailed investigation.” Any claims made by Megan will be “handled appropriately” and “we look forward to an opportunity to meet with Megan and resolving this matter amicably for all parties,” the spokesperson added.

“We know Megan very well and treasured her 10 years with the company. It is people like Megan that have made Guaranteed Rate the great company that it is today. We love her spirit, infectious energy, and relentless commitment to serving her customers. At no point did we want her to leave the Guaranteed Rate and we would welcome her back with open arms,” the spokesperson wrote.

According to the lawsuit, McDermott was a “high-performing” LO who received “a significant number of inquiries to work for different mortgage” companies from 2020 to 2022, which she believes “would include substantial and significant signing bonuses.”

McDermott claims that she asked the two managers for a retention bonus in January 2022; however, they said no LOs were receiving them. After two months, she became aware that male LOs with a comparable level of success were receiving retention bonuses, while she and other female LOs were not receiving them, the lawsuit alleges.

In response to a new request, Moschella told her that “loan officers had gotten retention bonuses, but that he could not provide her one,” the lawsuit states. The document also says that Moschella’s decision was only based on her “membership in a protected class, her gender.”

Regarding her compensation, McDermott, who was paid on a commission basis only, said G-Rate at various times denied her commission, identifying the mortgages as originated by another employee. 

In addition, when she reached the lender’s top-producers category known as “Chairman’s Circle,” McDermott claimed that her commission should have increased from 72 to 84 basis points on the loan volume, but it did not happen despite the increase being given to male LOs.

According to Scotsman Guide, a verified ranking based on information sent by lenders and mortgage pros, McDermott originated about $113 million in 2020, $109 million in 2021 and $44 million in 2022, when she left G-Rate to join rival CrossCountry Mortgage (CCM). Another source, mortgage tech platform Modex, which collects data from public records nationwide, shows she originated over $95 million in 2020, $93 million in 2021 and $50 million in 2022.

G-Rate produced over $73 billion, $114 billion and $53 billion, respectively, in mortgage volume in 2020, 2021 and 2022, according to Inside Mortgage Finance estimates.

McDermott also brought allegations of sexual harassment against Lamkin, who in 2015 alledgedly described “in graphic and offensive terms Plaintiff’s sexual activity which would have led to pregnancy.” McDermott said she told Moschella about Lamkin’s behavior, but he asked her not to make a formal complaint.

During her tenure at the company, McDermott alleges that Lamkin regularly screamed at her and used gender-based and demeaning slurs, which also happened to other female employees. She complained to Human Resources in 2019 but said the department failed to do anything to investigate his behavior. 

Lamkin and Moschella did not return a request for comment.

McDermott asks for damages and a jury trial.