Ohio Attorney General Alleges United Wholesale Mortgage Colluded With Brokers To “Rip Off” Consumers

The Attorney General of Ohio has filed a consumer fraud lawsuit against United Wholesale Mortgage (UWM) alleging that the Michigan-based lender conspired with brokers to “rip off” consumers. According to the complaint, which was filed in the Ohio County Common Pleas Court, UWM falsely represented that certain mortgage brokers were operating independently of UWM. The Attorney General’s lawsuit claims that UWM colluded with their brokers to funnel loans back to UWM and then charged borrowers above-market rates and fees through the alleged scheme.

“Buying a home is hard enough without having to worry about a lender scheming behind your back,” said Ohio Attorney General Dave Yost in a statement. “This predatory business practice has no place in Ohio.”

According to Yost’s lawsuit, from 2021 to 2023, UWM issued about $605 million in mortgages to Ohio residents, purportedly through independent brokers. Those brokers then directed 99% of their business back to UWM, the suit alleges.

A spokesperson for UWM issued a statement that the company was “blindsided” by the attorney general’s accusations.

In a statement, UWM said, “We had no prior knowledge or warning of this lawsuit filed by the Ohio Attorney General, which is in and of itself suspicious. It essentially repeats the frivolous allegations contained in a virtually identical lawsuit filed last year by a law firm that has a business arrangement with a hedge fund. In response to that lawsuit, we are seeking sanctions against the law firms that filed it and have moved to dismiss the claims.”

In April 2024, several plaintiffs filed a similar class action complaint that alleged that UWM conspired with brokers to feed business to the wholesale lender. On the same day that the lawsuit was filed, Hunterbrook Media released a news analysis with similar claims that UWM pressured brokers to “push deals its way.”

After the lawsuit was filed, UWM filed a motion to issue sanctions against the law firm representing the plaintiffs. They alleged that Hunterbrook shared advanced details of the news analysis with the law firm. UWM also claimed that Hunterbrook and its affiliated investment arm engaged in a “coordinated attack” to smear UWM, and that the investment company shorted UWM stock prior to the release of the news analysis and profited when UWM’s stock price fell. That lawsuit remains ongoing.

In the Ohio case, the attorney general’s statement indicated that the state is seeking compensation for affected consumers, civil penalties, and a court order requiring the company to comply with Ohio law. The AG’s office will seek civil penalties of $25,000 for “each unfair or deceptive act or practice.”

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Kohl & Cook Law Firm, LLC represents the interests of consumers in consumer fraud claims filed against Ohio businesses. Call our Dayton consumer lawyers today to schedule an appointment, and we can begin discussing your next steps right away.