Key Takeaways
- • Marty Preston, former President of Retail at Benchmark Mortgage, has moved his mortgage origination business to Guaranteed Rate following a comprehensive evaluation of more than 20 lenders.
- • Preston's decision to switch platforms was driven by Guaranteed Rate's transparent profit-and-loss model and entrepreneurial structure, which he determined offered superior capability to scale his business.
- • The move occurs amid litigation filed by Benchmark Mortgage against Preston and branch manager Denise Donoghue, alleging they misappropriated confidential financial data and trade secrets valued at over $1 million in damages.
- • Benchmark's complaint accuses Preston and Donoghue of using sensitive companywide financial information—including pricing, margins, and operating assumptions—during compensation negotiations and potentially sharing the data with competitors.
- • Donoghue has already departed to Absolute Mortgage & Lending; her business operates as The Mortgage Nerd Group, and both defendants have denied the allegations.
Summary
Marty Preston, former President of Retail Lending at Benchmark Mortgage, has transitioned his mortgage origination business to Guaranteed Rate after conducting what he characterized as a comprehensive market review evaluating more than 20 lenders. Preston selected Guaranteed Rate specifically for its transparent profit-and-loss compensation model and entrepreneurial operational framework, positioning the move as a strategic decision to accelerate growth and take his business "to the next level."
The business transition takes place against a backdrop of significant legal dispute. Benchmark Mortgage filed suit in Texas Business Court alleging that Preston and Denise Donoghue, a branch manager, violated state law by misappropriating trade secrets and confidential financial information. According to court filings, Preston allegedly encouraged Donoghue to utilize sensitive companywide financial data during a compensation negotiation in late March. Donoghue reportedly confronted Benchmark executives with a slide deck comparing her income to company earnings on her loan production and threatened departure unless the lender accepted new compensation terms. Benchmark further alleges that Donoghue claimed to have shared these financials with competitors while shopping her business arrangement.
Benchmark's complaint characterizes the misappropriated information as strategically sensitive, stating that "a competitor armed with those figures would have a roadmap to Benchmark's pricing, margins, recruiting posture and operating assumptions." The lawsuit seeks damages exceeding $1 million and included a hearing request for a temporary injunction to prevent the defendants from further using or disclosing the information. A hearing on the injunction was scheduled for the week following the filing.
Donoghue has since transferred her business, The Mortgage Nerd Group, to Absolute Mortgage & Lending, according to the Nationwide Multistate Licensing System. Both Preston and Donoghue denied the allegations in statements to industry media. Benchmark indicated in its complaint that it was in the process of terminating both employees at the time of filing.
The business transition takes place against a backdrop of significant legal dispute. Benchmark Mortgage filed suit in Texas Business Court alleging that Preston and Denise Donoghue, a branch manager, violated state law by misappropriating trade secrets and confidential financial information. According to court filings, Preston allegedly encouraged Donoghue to utilize sensitive companywide financial data during a compensation negotiation in late March. Donoghue reportedly confronted Benchmark executives with a slide deck comparing her income to company earnings on her loan production and threatened departure unless the lender accepted new compensation terms. Benchmark further alleges that Donoghue claimed to have shared these financials with competitors while shopping her business arrangement.
Benchmark's complaint characterizes the misappropriated information as strategically sensitive, stating that "a competitor armed with those figures would have a roadmap to Benchmark's pricing, margins, recruiting posture and operating assumptions." The lawsuit seeks damages exceeding $1 million and included a hearing request for a temporary injunction to prevent the defendants from further using or disclosing the information. A hearing on the injunction was scheduled for the week following the filing.
Donoghue has since transferred her business, The Mortgage Nerd Group, to Absolute Mortgage & Lending, according to the Nationwide Multistate Licensing System. Both Preston and Donoghue denied the allegations in statements to industry media. Benchmark indicated in its complaint that it was in the process of terminating both employees at the time of filing.
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