Editor’s Note: The Mortgage Mix is RISMedia’s biweekly highlight reel of need-to-know mortgage-industry happenings. Watch for it every other Friday afternoon.
– Ohio Attorney General Dave Yost has filed a lawsuit against United Wholesale Mortgage (UWM), alleging that the lender misrepresented the independence of mortgage brokers and thereby misled borrowers. The complaint specifically alleges that UWM used a network of brokers who were 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. This predatory business practice has no place in Ohio,” said Yost.
UWM said in a statement that this lawsuit “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.” UWM has consistently been a top mortgage lender, stating in its recent Q4 2024 earnings report that it was the company’s “third year as the number one mortgage company in America, the fourth year as the largest purchase lender, and the 10th year as the number one wholesale lender.”
– New York Attorney General Letitia James has been accused of mortgage fraud related to a Virginia home and a New York property. Federal Housing Finance Agency (FHFA) Director Bill Pulte alleged in a letter to U.S. Attorney General Pam Bondi that James “has, in multiple instances, falsified bank documents and property records to acquire government backed assistance and loans and more favorable loan terms.” Pulte’s allegations state that James falsified her residence status at a home in Norfolk, Virginia, to get a better mortgage rate, and that she bought a five-family property in Brooklyn in 2001 with a loan that is only available for homes with four units or less. James notably led several investigations into Trump, including winning a $454 million civil judgment against him for falsifying documents.
A spokesperson for the New York attorney general’s office said that “Attorney General James is focused every single day on protecting New Yorkers, especially as this Administration weaponizes the federal government against the rule of law and the Constitution. She will not be intimidated by bullies—no matter who they are.”
– The Department of Veterans Affairs (VA) has announced it will end the Veterans Affairs Servicing Purchase (VASP) program on May 1, 2025, as per a mandate from the Trump administration. The VASP program—launched May of 2024 by the Biden administration—has allowed the VA to purchase delinquent loans and restructure them into more manageable terms, such as a fixed 2.5% interest rate. The program was created to assist veterans who were struggling with their mortgages following the end of pandemic era relief efforts. “This change is necessary because VA is not set up or intended to be a mortgage loan restructuring service,” VA press secretary Pete Kasperowicz said in a statement.
– Mr. Cooper Group announced its Q1 2025 earnings, which fell a bit short of previous quarters. The company reported $8.3 billion in loan origination across 32,296 loans, which is a 10% decline from $9.3 billion in Q4 2024. It also reported a net income of $88 million, well down from the $204 million in Q4 2024. However, Mr. Cooper did see significant growth in its purchase loans, rising from 65% of volume last quarter to 72% in Q1. Chairman and CEO Jay Bray commented that “(t)his was another strong quarter, highlighting the power of our platform to deliver consistent, recurring, and predictable results, as well as higher returns.” This report follows shortly after the company’s recent announcement of its intended acquisition by Rocket Companies.
– Organizations such as the Community Home Lenders of America (CHLA) are petitioning Congress to not raise fees for GSE and government-backed loans as it deliberates on a reconciliation bill. The CHLA specifically requested that Congress repeal the 10-basis point GSE guarantee fee increase from four years ago, and reject any new mortgage fee hikes on loans backed by the VA or GSEs. “As a general principle, CHLA believes that mortgage fees on federal mortgage loan programs (FHA, VA, RHS, and Fannie Mae and Freddie Mac) should NEVER be increased unless such fee hikes are based on actuarial risk or safety and soundness considerations,” said Scott Olson, executive director of CHLA.
– Better.com has announced a partnership with Biz2Credit to expand access to home equity financing for small business owners. The collaboration brings Better’s fully digital HELOC and HELOAN products to Biz2Credit’s 250,000-plus customers, offering up to $500,000 in funding and a $250 discount through a co-branded platform. Better stated that the partnership is part of its ongoing strategy to combine its proprietary tech with leading platforms.