Mat Ishbia
Billionaire Mat Ishbia's United Wholesale Mortgage of Pontiac will pay up to $2.75 million to settle arbitration claims invovling overtime.
The settlement covers current and past account executives who worked at UWM between Oct. 12, 2018, and last Dec. 23, the Detroit Free Press reports.
The total number of individuals eligible for a share of the settlement wasn't disclosed. Of the $2.75 million amount, nearly $930,000 is going to attorneys' fees.
UMW didn't admit guilt and denied wrongdoing.
In April, Ishbia, president and CEO of UWM, Wholesale Mortgage, took a shot at competitor, Rocket Mortage/Quicken Loans, run by Dan Gilbert, for not treating workers properly.
"Disappointed is the nicest way to describe my thoughts around Rocket Mortgage/Quicken Loans laying off over 2,000 of their people, as this should not be necessary for a company that made over $5 Billion last year in profits," Ishbia wrote on LinkedIn. "Even though United Wholesale Mortgage directly competes with Rocket, I hate seeing this type of negative impact on families in Metro Detroit."
Joseph Hrabnicky, an associate business strategist at Rocket Central, responded at the time:
"I find it interesting how you forgot to mention that the layoffs are voluntary and include months of base pay, 6 months of health insurance, full PTO reimbursement, and free career services. All in addition to a good standing departure in which team members will be welcomed back when the market allows."
