By KIMBERLEY HAAS
The CEO of California-based America’s MoneyLine is fighting back after being slapped with a $2.8 million lawsuit from lending giant United Wholesale Mortgage.
In a statement released on Friday morning, Shawn Nevin claimed that UWM uses illegal, anti-competitive practices.
At issue is the “All In” policy implemented by UWM CEO Mat Ishbia.
Ishbia said in a Facebook Live message last March that brokers who work with Fairway Independent or Rocket Mortgage could no longer work with UWM.
“Mat Ishbia’s ‘ultimatum’ is a blatant and desperate attempt to maintain his company’s grip on the throat of mortgage brokers across the country,” Nevin said. “As he works tirelessly to craft a false narrative around being champions of brokers, his actions tell a completely different story.”
Nevin said the fundamental purpose of being an independent broker is to have as many options as possible to provide clients with the best rate and loan program for them.
Nevin said UWM is often pricier than their competitors and they refuse to lend to people with FICO scores below 620.
Nevin said UWM’s actions held more than 100 of their clients’ loans “hostage in their pipeline” and after receiving assurances the ultimatum would not be enforced, they signed an agreement and were sued for $2.8 million shortly thereafter.
“Ishbia’a anti-American ultimatum was purely designed to maintain his market share, not helping the American homeowner,” Nevin said. “I’m standing up for what is right. This is a true David versus Goliath battle.”
According to legal documents filed Friday in the US District Court for the Eastern District of Michigan Southern Division, attorneys Matthew Novello and Jeffrey Morganroth called Ishbia and his team “untrustworthy bullies” who are “obsessed with damaging the business and reputation of their rivals.”
They say that since UWM’s parent company, United Wholesale Mortgage Holdings Corporation became a publicly-traded company on the New York Stock Exchange on January 22, their share price has been declining.
At the same time, Rocket Pro has expanded its market share in wholesale mortgage lending. They offer better pricing, expanded products and guidelines for clients with less than perfect credit, and lower rates, the lawyers argued.
On February 3, UWM filed its complaint against America’s Moneyline.
UWM claims in its lawsuit that America’s MoneyLine has sent 560 loans to Fairway Independent and Rocket Mortgage, in violation of their agreement.
Ishbia, 42, was named one of the “Most Influential Mortgage Professionals Under 40” by National Mortgage Professional magazine in 2019.
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