By Dean Seal
The attorney general of Ohio has filed a lawsuit accusing UWM Holdings of falsely telling customers that it sources loans from independent brokers.
The Michigan-based lender, which operates as United Wholesale Mortgage, was colluding with brokers to funnel nearly all of its customers' loans back to itself, according to the lawsuit from Ohio Attorney General Dave Yost.
This allows the company to charge borrowers above-market rates and fees, all while it claims to be saving borrowers money by finding them the best deals from supposedly independent lenders, the lawsuit alleges.
"Thousands of unsuspecting borrowers did not obtain any such 'independent' advice or representation," the suit said.
A representative for UWM Holdings didn't immediately respond to a request for comment.
Yost claims the company issued about $605 million in mortgages to Ohio residents from 2021 to 2023, and that brokers involved in the loans directed 99% of their business back to UWM.
The suit, filed in an Ohio county court, seeks fines and compensation for affected customers in the state.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
April 17, 2025 12:23 ET (16:23 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.