Sprout Mortgage and its ex-workers are close to settling several lawsuits over unpaid wages following the abrupt closure of the non-QM lender 11 months ago. A judge has yet to approve the deal.

On June 1, attorneys representing the former employees filed a notice of motion for preliminary settlement approval in a federal district court in New York. The document states that Sprout will pay $3.5 million to over 800 ex-workers for unpaid wages, per the parties’ agreement. 

Four lawsuits filed in New York and California are part of the settlement, which names Sprout, its affiliated company Recovco Mortgage Management details ⇒