United Wholesale Mortgage Sued

[djd09]

Ohio Sues United Wholesale Mortgage Over Broker 'Scheme'​

Lawsuit alleges lender steered borrowers into higher-cost loans through deceptive broker relationships

Ohio Attorney General Dave Yost has filed a lawsuit against United Wholesale Mortgage (UWM), alleging the Michigan-based lender misled borrowers by misrepresenting the independence of mortgage brokers.

The complaint, filed in Montgomery County Common Pleas Court, claims UWM used a network of brokers — marketed as unaffiliated advisors — to funnel nearly all mortgage business back to itself, leading borrowers into higher-cost loans under the guise of competitive shopping.

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

Ohio Sues United Wholesale Mortgage Over Broker 'Scheme'

Ohio Attorney General Dave Yost has filed a lawsuit against United Wholesale Mortgage (UWM), alleging the Michigan-based lender misled borrowers by misrepresenting the independence of mortgage brokers.

nationalmortgageprofessional.com

no no no...public trust

 

[Zoe]

Ohio Sues United Wholesale Mortgage Over Broker 'Scheme'​

Lawsuit alleges lender steered borrowers into higher-cost loans through deceptive broker relationships

Ohio Attorney General Dave Yost has filed a lawsuit against United Wholesale Mortgage (UWM), alleging the Michigan-based lender misled borrowers by misrepresenting the independence of mortgage brokers.

The complaint, filed in Montgomery County Common Pleas Court, claims UWM used a network of brokers — marketed as unaffiliated advisors — to funnel nearly all mortgage business back to itself, leading borrowers into higher-cost loans under the guise of competitive shopping.

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

Ohio Sues United Wholesale Mortgage Over Broker 'Scheme'

Ohio Attorney General Dave Yost has filed a lawsuit against United Wholesale Mortgage (UWM), alleging the Michigan-based lender misled borrowers by misrepresenting the independence of mortgage brokers.

nationalmortgageprofessional.com

no no no...public trust

Did you say public trust to me? Don't you ever cuss me like that again.

I am filing complaint with head surfer right now. I can't believe you did that.

How dare you?

I have never had anybody cuss me like that.

 

[George Hatch]

At least they're approaching it from the borrower-protection angle and are defining the class as those borrowers. The lawyers are going to make some arguments. For starters

• "appraisal fee" charged to borrowers has always included fee shops and appraisal depts paying the appraisers a fraction of the fee that was collected . Both at the residential and commercial levels.
• A large percentage of those fee shops and national firms have paid appraisers as contractors, not employees. So there's nothing new or unusual about an AMC appraiser operating as a subcontractor to the AMC.
• "Has no choice" implies borrowers have no choice but to obtain mortgages from lenders who use AMCs. That's obviously untrue

 

[Zoe]

At least they're approaching it from the borrower-protection angle. The lawyers are going to make some arguments. For starters

• "appraisal fee" charged to borrowers has always included fee shops and appraisal depts paying the appraisers a fraction of the fee that was collected . Both at the residential and commercial levels.
• 
  
• "Has no choice" implies borrowers have no choice but to obtain mortgages from lenders who use AMCs. That's obviously untrue

Some appraisers pay staff as employees. In that case the fee stated is true to the borrower. Truth in lending disclosures matters to borrowers and AMCs. Have you been hanging out with my old girlfriend Joan?

Understand local and federal tax rules are different whether you are employee or not. Okay?

 

[Zoe]

With VA, the fee stated to borrower is true. I won't swear other junk fees may be added to truth in lending disclosures that borrower misses. However, the appraisal fee is true before said and done to borrower on truth in lending disclosures.

There is no commingling of fees on appraisal. Did I mention VA needed no bailout in market meltdown?

Lenders have a very limited basis on variances on truth in lending disclosures. AMCs and lenders don't have those variance limits relative to appraisal.

The other factor is who is doing the appraisal? Are they certified/licensed?

Okay borrower. Appraisal fee was $1500. Licensed appraiser got paid $200.

Joan loves that.

 

[George Hatch]

The point is that - in general and across the spectrum of most mortgage lending clients - breaking down the fee in the disclosures between the appraiser's end vs their fee shop or employer or contractor has never been required. It's not an expectation among these borrowers. If it's anti-consumer to "bundle" the fee when there's an AMC involved then that applies equally to the staff appraisers and the fee shop appraisers and all other split fee or fractual compensation relationships.

The lenders are the primary target here, as they should be. They're the ones who might (possibly) be compelled to provide these disclosures to the borrowers at the time of application. If there are monetary damages they're the ones who are going to pay them; and the amount might even be enough to put some of them under. Further aggregating the marketplace for appraisal services among the smaller number of survivors.

 

[Zoe]

The point is that - in general and across the spectrum of most mortgage lending clients - breaking down the fee in the disclosures between the appraiser's end vs their fee shop or employer or contractor has never been required. It's not an expectation among these borrowers. If it's anti-consumer to "bundle" the fee when there's an AMC involved then that applies equally to the staff appraisers and the fee shop appraisers and all other split fee or fractual compensation relationships.

The lenders are the primary target here, as they should be. They're the ones who might (possibly) be compelled to provide these disclosures to the borrowers at the time of application. If there are monetary damages they're the ones who are going to pay them; and the amount might even be enough to put some of them under. Further aggregating the marketplace for appraisal services among the smaller number of survivors.

It's not an expectation among these borrowers. Quoting you.

Okay, who is the professional here on truth in lending disclosures? The borrower is often at huge disadvantage. Are you sure you and Joan are not hanging out?

 

[djd09]

Thread 'Law firms begin addressing AMC fraud'

Jan 30, 2025

Law firms are preparing lawsuits against AMCs for exploiting consumers, and indemnity agreements will not protect them. When the attorneys find this has the approval of GSEs and HUD, expect major financial consequences. Stay tuned.

https://www.forthepeople.com/blog/h...ow-about-appraisal-management-companies-AMCs/

• Mejappz
• Replies: 168
• Forum: General Appraisal Discussion

• 
• 

mejappz was all over it...

California Class Action Challenges Inflated Appraisal Fees

FOR IMMEDIATE RELEASE 2/24/2025

arcc-usa.org

 

[djd09]

mejappz was all over it...

California Class Action Challenges Inflated Appraisal Fees

FOR IMMEDIATE RELEASE 2/24/2025

arcc-usa.org

Lawsuit Challenges Inflated Appraisal Fees in Mortgage Transactions​

Dallas, TX – A class-action lawsuit filed on November 1 in the Superior Court of California, County of Stanislaus, accuses ClearCapital.com, Inc., Core Valuation Management, Inc., and Rocket Mortgage, LLC of deceptive business practices related to home appraisal fees. The case, Timmins v. Clear Capital, et al., alleges that the defendants charged borrowers inflated appraisal fees that far exceeded the actual cost of the services, enriching appraisal management companies (AMCs) at consumers' expense.

The lawsuit contends that AMC middlemen misrepresent appraisal costs by charging fees that were in reality much higher than what appraisers received. The suit further alleges that Clear Capital and Core Valuation Management typically retained more than 60%—and in some cases as much as 84%—of borrowers' appraisal fees without providing equivalent value.

"Borrowers have been misled into thinking they're paying for an appraisal, when in fact a large portion of that fee is being siphoned off by middlemen with no added benefit to the consumer," said Josh Tucker, co-founder of the Appraisal Regulation Compliance Council (ARCC). "The research ARCC submitted to the Consumer Financial Protection Bureau (CFPB) shows that this is not an isolated issue—it is an industry-wide practice that has gone unchecked for too long."

The lawsuit cites ARCC's research, submitted to the CFPB in August 2024, which detailed the practice of siphoning a significant portion of appraisal fees across multiple states, including California. The complaint also highlights how AMCs prevent appraisers from disclosing their actual fees, keeping borrowers unaware of the extent of the overcharges.

Lori Noble, a board member of ARCC, emphasized the need for transparency: "Borrowers deserve to know where their money is going. AMCs charged borrowers more than $12 billion in hidden fees using deceptive practices which not only drove up costs for homebuyers but also distorted licensing and regulations."

The lawsuit seeks restitution for affected borrowers, as well as injunctive relief to prevent AMCs and mortgage lenders from continuing these practices.

i dont even think bernie madoff stole 12 billion dollars...

 

[George Hatch]

I hope this case does get all the way into the courts. Its the only way anyone is going to get any closure on the issue. It should have happened a long time ago.