UWM Moves To Dismiss Class Action Racketeering Lawsuit

By KIMBERLEY HAAS Lawyers for United Wholesale Mortgage have moved to dismiss a class action lawsuit alleging violations of the RICO Act. The lawsuit, filed on April 2 by Boies Schiller Flexner LLP, claims that UWM participated in a pattern of racketeering activity by conspiring with brokers to withhold information from homebuyers while misrepresenting material facts to get these consumers to use the mortgage giant while financing their properties. It was submitted on the same day as a report released by Hunterbrook Media linked UWM to $39 billion in mortgages sent to the lender by brokers who worked as loyalists, meaning they sent more than 99% of their business to the company. The motion to dismiss, filed on June 21,…

Hunterbrook Hits UWM, UMortgage With Shell Scheme Claims

By KIMBERLEY HAAS Hunterbrook Media is taking a second swing at United Wholesale Mortgage, claiming that an executive there helped a shell company establish Philadelphia-based UMortgage. On April 2, Hunterbrook made waves when they published a report accusing UWM in Pontiac, Michigan, of widespread fraud. They estimated that homebuyers paid “between hundreds of millions and billions more in closing costs” because independent mortgage brokers working with UWM sent more than 99% of their business to the lender. UWM’s CEO Mat Ishbia blew off the report at the time, pinning blame for it on his competitor Rocket Mortgage and its founder and chairman, Dan Gilbert. Rocket Mortgage denied having any involvement with the report. The following week, UWM leaders went after…

UWM Doubles Down On Claims About Hunterbrook Report

By KIMBERLEY HAAS Leaders at United Wholesale Mortgage are doubling down on accusations that an explosive report released last week by Hunterbrook Media is inaccurate and tied to their main competitor, Rocket Mortgage. Authors of the report, published on April 2, claimed that $39 billion in mortgages were referred to UWM by independent brokers who sent more than 99% of their business to the lender. They estimated that borrowers paid “between hundreds of millions and billions more in closing costs than people whose brokers found them typical loans.” “Litigators and mortgage experts say UWM’s conduct could constitute fraud and run afoul of laws passed after 2008 to protect borrowers,” the report’s introduction said. In a social media post published Tuesday…

UWM And Its CEO Play Blame Game After Bombshell Report, New Lawsuit

By KIMBERLEY HAAS Leaders at United Wholesale Mortgage are lashing out after a bombshell report that was followed up with a consumer class action lawsuit filed on behalf of borrowers. Hunterbrook Media published the report on Tuesday, which claimed that $39 billion in mortgages were referred to UWM by independent brokers who sent more than 99% of their business to the lender. These brokers were supposed to represent homebuyers and shop around for the best deal on their behalf. Instead, they became “loyalists” to UWM, according to the report. Hunterbrook estimated that borrowers paid “between hundreds of millions and billions more in closing costs than people whose brokers found them typical loans.” UWM CEO Mat Ishbia‘s “All In” ultimatum helped…

UWM Accused Of Fraud

United Wholesale Mortgage and its CEO Mat Ishbia are under fire with accusations that the company’s independent brokers aren’t independent after all. A report from Hunterbrook Media makes the claim that at least $39 billion in mortgages were referred to UWM by brokers who refer more than 99% of their business to UWM, throwing these brokers’ relationships with the lender into question. The claims call UWM’s basic setup into question: the idea that it works with independent brokers who shop around for the best deal for homebuyers. Instead, UWM turns its brokers into “loyalists” who choose UWM regardless of price. Hunterbrook estimates that borrowers paid “between hundreds of millions and billions more in closing costs than people whose brokers found…