While recent coverage of Digital Risk LLC might have suggested otherwise, the company says all is well despite the upcoming departure of its two top executives.
Mortgage Daily published a wire service story Sunday indicating that the chief executive officer and the president of Digital Risk are leaving.
In addition to respectively being CEO and president, Peter Kassabov and Alex Santos are also the co-founders of the Maitland, Fla.-based company.
But a spokeswoman for Digital Risk took issue with other parts of the story.
Brandie Young explained that even though the story said Digital Risk is wrestling with an unexpected business downturn, it is in fact facing normal business fluctuations in the mortgage industry.
“It’s quite frustrating when such gross inaccuracies in reporting occur, as it tends create a bit of panic where none need exist,” Young said in a written statement.
She also noted that the fluctuations “have no correlation to Kassabov and Santos’ departure.”
Young suggested that it did not hand “out a new round of pink slips,” as written in the article. Instead, it filed a Worker Adjustment and Retraining Notification, which “warns that a job ‘could’ be terminated,” whereas “a pink slip is instant termination.”
She also took issue with the statement in the story that said the jobs will end on Nov. 19, clarifying that “the jobs may end Nov. 19.”
Young called comments about how Kassabov, Santos and other investors are in line to receive an additional $27 million “speculation.”
Young clarified that out of 750 WARN notifications filed in February, the net layoff was 208.
The claim in the story that “The company lost a major client — J.P. Morgan Chase — earlier this year” is “absolutely untrue,” according to Young.
“The mortgage market is always in flux and malicious reporting doesn’t help,” Young stated. “In this case, Digital Risk is quite stable.
“While the company will miss Mr. Kassabov and Mr. Santos, the succession will be smooth, particularly with the third founder Jeffrey Taylor in place to ensure clients receive the best possible services and solutions.”
