WSO,
I just received an offer to start out as an analyst with a boutique mortgage brokerage shop. The idea is that I would do that for 12-24 months and then move into production once I get a handle on our various lender's criteria, etc. The offer comes with a pretty strict non-compete, and I wanted some advice to see what is the industry standard. It has the usual stuff, i.e. can't take clients or lenders with you if you leave, can't take company information etc. However, it also out lines that if I leave on my own accord or if I am let go, I cannot work for another mortgage broker/banker and in "real estate finance" (presumably a lender), and I can't go to any of the lenders/developers/investors they work with for 6 months after my employment ends, and within a 100 mile radius.
Is this standard in the industry as an analyst? I understand that non-competes are standard for producers, but I have never heard of an analyst signing one of these. It makes me hesitant.
Thoughts?
Not standard at all, especially as an analyst.
Usually brokerages want analysts to move into clients' firms in order to further a relationship.
Thanks for your response, would something this strict be the industry standard for a producer/originator?
That looks so aggressive that it might not be enforceable at all. Restricting you from working in real estate finance as a whole, including for your clients, goes beyond what a non-compete can do. It should be limited to other debt brokerage shops because that is who they compete against.
Not enforcable given your age and junior role, legally that is but each state is different.
You can blackline and add, unless the next job is in a purely analytical role.
Yeah that's total bullshit. I've never had to sign a non-compete at any firm I've been at, both on the sell and buy side.....
Redline the shit out that document
I've seen a noncompete among producers and them needing to take a gardening period. Analysts move so much that I haven't seen that one before.
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