Founder Bows Out at Foxton's North America

YHD has enjoyed rapid growth over those five years with its signature 2% commission on residential mortgages compared to the industry standard of 6%, its Internet-based technology, and its aggressive marketing. Foxton's entered the picture in early 2001 with an initial $20 million investment in YHD and took a majority interest a year later.

With that majority interest came a name change as YHD became Foxton's North America. The company currently has 400 employees in 10 locations.

The speculation had been that Cohen was on his way out. As had been widely reported, his picture was removed from the company's Web site in late January, and his name was deleted from the company's board of directors. He was also dropped as spokesman in the company's broadcast advertising.

"Glenn Cohen forever changed the landscape of the US real estate marketplace after correctly recognizing that consumers were not being well served by extraordinarily high real estate commissions and decades-old real estate marketing practices," according to Jon Hunt, Foxton's chief executive, in a written statement. "Foxton's remains committed to the success of the YourHomeDirect model."

"Building this company has been my life's passion for the past five years," according to Cohen, similarly in a written statement. "My objective was to create a major brand in real estate and change the industry, and I've accomplished that. I now want to continue pursuing more entrepreneurial ventures."

While both Cohen and Foxton's officials say the parting was by mutual agreement and amicable, Cohen leaves the company he founded under a cloud. He has been subject to several lawsuits recently, including two for sexual harassment. And the New Jersey Department of Labor is said to be investigating the company regarding payment of overtime compensation and commissions.