UWM seeks to dismiss remaining RESPA claims

"The plaintiffs alleged that UWM adopted policies that restricted brokers' ability to shop for loans, despite marketing brokers as independent. These policies include UWM's All In initiative, which bars brokers from doing business with rivals such as Rocket Mortgage and Fairway Home Mortgage, as well as a lock-in policy that discourages brokers from shopping a loan after it is initially locked."

"McMillion ruled that the plaintiffs failed to establish proximate cause for their alleged racketeering injuries. The judge wrote that while the complaint detailed UWM's market position and broker incentives at length, it did not connect these allegations to the borrowers' alleged injuries. While McMillon dismissed most of the claims, she allowed only limited RESPA claims brought by two plaintiffs to proceed, as well as some state-based claims involving deceptive and unfair trade practices."

"The lawsuit followed a Hunterbrook Media report released the same month. The investigation revealed that more than 8,000 loan officers at independent brokerages sent more than 99% of their mortgages to UWM in 2023, with a total value of at least $11.7 billion. UWM was also targeted by Ohio Attorney General Dave Yost, who has raised similar allegations against the lender."

UWM filed a reply after Judge Brandy R. McMillion dismissed all RICO claims and most RESPA claims in October. Plaintiffs Therisa D. Escue, Billy R. Escue, Kim Schelble and Brian P. Weatherill filed an April 2024 suit alleging RICO and RESPA violations after obtaining mortgages through UWM. A Hunterbrook Media investigation found over 8,000 loan officers at independent brokerages sent more than 99% of their mortgages to UWM in 2023, totaling at least $11.7 billion. Plaintiffs contend UWM policies like the All In initiative and a lock-in policy restricted brokers from shopping loans. The judge ruled plaintiffs failed to show proximate cause for racketeering injuries, but allowed limited RESPA claims by two plaintiffs and some state deceptive-and-unfair trade claims to proceed. Two plaintiffs maintain active RESPA claims and a third alleges violation of Florida's Deceptive and Unfair Trade Practices Act. UWM denies the allegations and is asking the judge to dismiss remaining claims.

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