Ohio Attorney General Dave Yost has initiated legal action against United Wholesale Mortgage, a Michigan-based wholesale mortgage lender, alleging deceptive business practices. The lawsuit, filed in Montgomery County Common Pleas Court, claims the company conspired with brokers in a scheme that resulted in Ohio consumers being charged above-market rates and fees.
"Buying a home is hard enough without having to worry about a lender scheming behind your back," stated Yost. "This predatory business practice has no place in Ohio."
As outlined in the lawsuit, United Wholesale Mortgage purportedly misrepresented brokers as independent entities capable of securing the best deals from various lenders to save borrowers money. Contrary to this representation, the lawsuit alleges that the company colluded with brokers to direct almost all loans back to itself. This strategy allegedly deprived borrowers of genuine independent advice or representation.
The allegations highlight that between 2021 and 2023, the company funneled approximately $605 million in mortgages to Ohio consumers through purportedly independent brokers. A significant portion of these brokers, as mentioned in the lawsuit, directed 99% of their business back to United Wholesale Mortgage, with 50 brokers redirecting $215 million in mortgages to the company in 2023 alone.
The lawsuit claims violations of Ohio's Consumer Sales Practices Act, Residential Mortgage Lending Act, and Corrupt Practices Act. It seeks remedies including compensation for affected consumers, civil penalties, and mandates for the company to adhere to Ohio laws.
Consumers wishing to report complaints about United Wholesale Mortgage can email UWMOhioComplaints@bsfllp.com.