Movement Mortgage Seeks $1.2M Award Against Ex-Staff

The mortgage lender asks a federal court to confirm an arbitration award against two former Chicago branch operators.

Updated on Nov. 10, 2026 in Residential

Movement Mortgage Seeks $1.2M Award Against Ex-Staff

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Movement Mortgage has filed a petition in federal court to confirm an arbitration award of at least $1,235,000 against two former Chicago-based employees. An arbitrator also denied counterclaims the two filed over their employment agreement terms.

Why it matters

The case shows how compensation and profit-share terms for loan originators can lead to disputes when production falls during a sharp rise in mortgage rates. For Chicago homebuyers and the local lending market, it highlights the financial pressures facing branch operators in a high-rate environment.

The arbitration award sought totals at least $1,235,000, with the company stating the Chicago branch cost $350,281 while the two operators were paid $835,000 and $400,000 in early 2022. Whether the federal court will confirm the award and how the originators' counterclaims will be resolved after the arbitrator's denial remains unresolved.

The players

Movement Mortgage

Movement Mortgage is a national residential mortgage lender that originates home loans across the United States and reports roughly 1,700 employees.

Victor Shkolnikov

Victor Shkolnikov is a former mortgage loan originator who was paid $835,000 in early 2022 to run a Chicago branch before his 2023 termination.

Igor Velyunskiy

Igor Velyunskiy is a former mortgage loan originator who was paid $400,000 in early 2022 to run a Chicago branch before his 2023 termination.

The details

Victor Shkolnikov and Igor Velyunskiy were paid in early 2022 to operate a Chicago branch, but their production fell after 30-year mortgage rates climbed from about 4% to 6% between April 2022 and April 2023. The company terminated them in April 2023, and an arbitrator later denied their counterclaims citing at-will employment language and a lack of evidence.

Early 2022: Shkolnikov and Velyunskiy are paid to operate the Chicago branch.
April 2023: Movement Mortgage terminates the two originators.
Summer 2026: An arbitrator denies the originators' counterclaims.
November 10, 2026: Movement Mortgage files a petition in federal court to confirm the award.

Rate Shock Fallout

The dispute follows the 2022–2023 rise in 30-year mortgage rates from about 4% to 6%, which sharply cut origination volume across the lending industry. It shows how that rate shock reached individual branch compensation agreements, with lenders moving to enforce profit-share terms against originators whose production dropped.

For Chicago homebuyers, the dispute highlights how branch-level staffing and compensation turmoil can affect the lenders they work with during high-rate periods. Borrowers weighing mortgage options may want to compare terms across several lenders when rates are volatile.

The takeaway

Mortgage rate swings can reshape loan officer income overnight, which can ripple into lender stability and the service borrowers receive. Buyers benefit from shopping rates and lender reliability rather than relying on a single institution.