Summit Funding, Inc., a Sacramento-based mortgage lender, has been the defendant in several lawsuits over the past decade, the largest being a trade-secret and employee-poaching case brought by Movement Mortgage that ended in a June 2025 settlement and a stipulated no-recruit injunction. A Summit Funding lawsuit brought in 2024 by a former Chief Growth Officer alleges whistleblower retaliation, and the company has also faced an age-discrimination arbitration award and consent orders from regulators in Virginia, California, and Washington.
Movement Mortgage’s Trade-Secret and Poaching Suits
In October 2023, Movement Mortgage sued Summit Funding in the U.S. District Court for the Western District of North Carolina, along with three former Movement sales executives who had jumped to Summit that July: Deran Pennington, Movement’s co-national sales director; Matt Schoolfield, who ran the South and Central division; and Chris Shelton, who ran the Eastern U.S. division.1HousingWire. Movement Sues Summit and Former Veteran Sales Executives for Poaching The complaint alleged misappropriation of trade secrets, data theft, and improper solicitation of Movement’s employees and customers.2HousingWire. Movement Accuses Summit Founder Todd Scrima of Corporate Espionage
Two months later, Movement filed a separate suit in the U.S. District Court for the Eastern District of California, this one targeting Summit founder Todd Scrima personally and seeking up to $40 million in damages. That complaint alleged Scrima had encouraged and facilitated the theft of Movement’s profit-and-loss model, internal workflows, underwriting protocols, and loan officer performance data. It cited screenshots of text messages in which Scrima allegedly directed a former Movement executive to use WhatsApp to receive stolen data instead of Summit’s servers, and it claimed Summit’s own in-house counsel had warned Scrima that the activities might be illegal.3National Mortgage News. Movement Mortgage Sues Summit CEO for Corporate Espionage
Contempt Finding
The North Carolina court issued a preliminary injunction early in the case barring Summit from soliciting Movement employees. In January 2024, Senior U.S. District Judge Robert J. Conrad Jr. found Summit in civil contempt for violating that order, citing what he described as “clear and convincing evidence” that Summit had continued to solicit nearly two dozen Movement employees. Judge Conrad ruled that Summit had “knowingly violated the terms of the injunction,” expanded the order to expressly prohibit recruiting Movement’s personnel and customers and using Movement’s confidential customer data, and directed Summit to pay Movement’s attorney’s fees as a sanction. Movement also accused Summit of hiring an employee specifically to move loans in progress and of representing itself to customers as a “sister company” of Movement.4National Mortgage News. Summit Funding Broke Court Order in Movement Mortgage Poaching Case, Judge Rules
Pennington’s $13 Million Counterclaim
Pennington, the most prominent individual defendant, filed a counterclaim seeking roughly $13 million against Movement. He alleged Movement had refused to pay commissions he had earned, claiming he generated over $390 million in net profit for the company in 2020 and was on track to earn more than $7 million in commissions before CEO Casey Crawford capped his pay, reportedly telling him the amount was “way too much money.”5National Mortgage Professional. Former Movement Mortgage Executive Files $13 Million Counterclaim He sought at least $3.27 million in underpaid wages and an additional $9.8 million under the South Carolina Payment of Wages Act.6HousingWire. Movement’s Ex-National Sales Director Countersues for $13M Over Unpaid Wages Movement’s attorneys called the claims “without merit.” Pennington denied Movement’s conspiracy allegations, though he acknowledged soliciting some Movement employees and signing a confidentiality agreement with Summit while still employed by Movement.
How the California Case Narrowed
In June 2024, U.S. District Judge Daniel J. Calabretta granted Scrima’s motion to dismiss four of the six counts in the California suit. Claims for tortious interference, civil conspiracy, violation of the California Unfair Competition Law, and a California computer-fraud statute were dismissed as preempted by the California Uniform Trade Secrets Act, with Movement given 30 days to amend. The two core trade-secret counts survived, and the court found Movement had sufficiently alleged Scrima was personally liable as the “guiding spirit” of the scheme.7Justia. Movement Mortgage, LLC v. Scrima
The 2025 Settlement
The parties told the North Carolina court on April 29, 2025 that they had agreed in principle to resolve all claims, and a formal settlement was executed around May 13, 2025.8HousingWire. Movement to Settle Dramatic Legal Battle With Summit On June 10, 2025, Judge Conrad vacated his earlier orders, dismissed all claims without prejudice, and closed the consolidated cases.
In place of the earlier injunctions, the court entered a stipulated injunction barring Summit and the named individual defendants from soliciting, encouraging, or assisting current Movement employees to leave the company or join another lender during a defined “Restricted Period.” That period started May 14, 2025, and runs 180 days after Summit makes a third installment payment to Movement, with a payment deadline of November 10, 2025; if paid on time, the restrictions expire May 9, 2026. Four Movement employees were carved out of the restriction, and the total dollar amount of the settlement was not disclosed.9GovInfo. Movement Mortgage LLC v. Summit Funding, Inc., Order (Doc. 162)
Whistleblower Suit by a Former Summit Executive
In February 2024, Brian Mitchell, Summit’s former Chief Growth Officer, sued the company and Scrima in Sacramento Superior Court, alleging he was wrongfully terminated after blowing the whistle on what he described as an illegal poaching scheme targeting Movement. Mitchell, who worked at Summit from December 2022 to November 2023, said he had refused orders to analyze a spreadsheet containing information on 4,500 employees and 9,000 borrowers used to replicate a competitor’s business model. He claimed he was locked out of his email without notice and fired on November 20, 2023 after requesting a severance package. His complaint included 11 counts, including retaliation, wrongful termination, and hostile work environment, and he reportedly cooperated with Movement in its own suits against Summit.10HousingWire. Ex-Summit Executive: I Was Fired After Blowing the Whistle on Illegal Recruiting Methods
2018 Age-Discrimination Arbitration Award
In July 2018, a retired judge sitting as arbitrator awarded $1.6 million to Shirleen Von Hoffmann, a former senior vice president of Summit’s national builder division, in a binding arbitration over age discrimination and constructive discharge. The arbitrator found that Scrima had “enabled and condoned” discriminatory behavior. The last available reporting had the case before Sacramento Superior Court for confirmation of the award and conversion into a formal judgment.11Mortgage Daily. Lawsuit Summit Funding Discrimination
State Regulatory Actions
Summit has resolved regulatory matters with at least three state agencies.
- Virginia (2014): After a December 2013 examination, the Virginia State Corporation Commission alleged violations of state lending laws and federal disclosure rules. Summit, operating under the DBA Greenwood Lending, paid a $14,000 civil penalty to settle.12Virginia State Corporation Commission. Summit Funding, Inc. d/b/a Greenwood Lending Settlement Order
- California (2018): The California Department of Business Oversight entered a consent order after finding Summit had charged unauthorized appraisal fees and failed to honor an advertised “On-Time Closing Guarantee” for 30 borrowers. Summit refunded affected borrowers and paid a $5,000 administrative penalty.13California DFPI. Summit Funding, Inc. Consent Order
- Washington (2023): The Washington Department of Financial Institutions issued a consent order resolving allegations of advertising violations, loan-processing failures, and prohibited compensation practices at a Kennewick branch. Summit agreed to a $75,000 fine, of which $35,500 was payable immediately and the remainder stayed contingent on future compliance, plus a $4,500 investigation fee.14Washington DFI. Summit Funding, Inc. Consent Order
Pending Acquisition by CrossCountry Mortgage
In March 2026, CrossCountry Mortgage announced a definitive agreement to acquire Summit Funding. CCM CEO Ron Leonhardt said the deal was intended to expand the company’s presence in western markets, and Scrima said the partnership would give his team “access to more tools, greater opportunities and increased earning potential.”15The Mortgage Point. CrossCountry Mortgage Expands Services With Acquisition of Summit Funding, Inc. Financial terms were not disclosed, and as of the announcement the deal had not yet closed.16HousingWire. CrossCountry Mortgage, Summit Funding