Overview
- Three veteran plaintiffs filed the case Wednesday in the U.S. District Court for the Western District of Missouri against Veterans United Home Loans and affiliates Mortgage Research Center and Realty Search Solutions.
- The suit alleges the lender’s branding and VA-focused marketing led borrowers to believe it was part of the Department of Veterans Affairs or the federal government.
- Plaintiffs claim a lead pipeline sent buyers to preferred agents who paid roughly 35% of their commission and were required to steer clients back to Veterans United or lose future leads, which they argue violates RESPA.
- The filing says borrowers were steered into loans with higher interest rates and received smaller financial-assistance packages than they could have obtained from competing lenders.
- Hagens Berman represents the plaintiffs, the complaint places the amount in controversy above $5 million, and Veterans United denies the allegations and says it will dispute the case in court.