Skip to main content

Mid Valley Funding Settles UWM 'All-In' Lawsuit

Jun 07, 2023
United Wholesale Mortgage headquarters

Agrees to pay $40K over allegations it violated its broker contract; UWM had sought $310,000.

A California mortgage brokerage has agreed to settle a lawsuit over claims it violated the controversial “All-In Initiative” imposed by United Wholesale Mortgage (UWM).

Mid Valley Funding & Investment Inc. (MVF) has agreed to pay $40,000 to settle the lawsuit, according to a UWM spokesperson. The nation’s largest lender had sought $310,000 in damages, as well as other compensatory damages, attorney fees, court costs, and other expenses.

Terms of the settlement, reached Monday, were not disclosed. The settlement agreement has not yet been posted to the website of the federal court in Detroit where the lawsuit was filed.

Neither MVF officials nor their attorney responded to requests for comment.

According to the lawsuit, filed in February 2022, MVF is an independent mortgage brokerage that signed a wholesale broker agreement with UWM in June 2015. 

The complaint states UWM announced its so-called “All-In Initiative” on March 4, 2021, saying “it had decided to end its business relationship with broker partners who chose to continue originating loans with select retail lenders specified in the agreement” — specifically, Rocket Mortgage and Fairway Independent Mortgage.

UWM’s lawsuit claims MVF agreed to the “All-In Addendum in April 2021” but subsequently violated the agreement by submitting “at least 62 mortgage loans” to the banned lenders.

Nicole Roberts, a spokesperson for UWM, confirmed the settlement amount and said the money from this and “any future settlements” will be used to support “FindAMortgageBroker.com for the sole benefit of helping educate consumers that the best way to get a mortgage is through an independent mortgage broker and to help support the mortgage broker community overall.”

Roberts also provided a statement from UWM President and CEO Mat Ishbia. 

“It’s very unfortunate to see a company like Mid Valley breach their contract,” Ishbia said, “but we’re going to continue to do what’s right for the broker community and I’m glad that this money is going to be dedicated to growing the broker channel through findamortgagebroker.com." 

UWM filed a similar lawsuit in February 2022 against America’s MoneyLine (AML), alleging the high-volume, California-based brokerage owes it $2.8 million after repeatedly violating the “All-In Initiative.” AML later filed a counter-lawsuit against UWM.

About the author
David Krechevsky was an editor at NMP.
Published
Jun 07, 2023
The Fragile World Of Inclusion

The legal assault on inclusion and its ripple effects could soon intrude on DEI initiatives in the mortgage industry

Mar 18, 2024
A Critical Juncture

Bold steps needed to foster a more inclusive mortgage industry

Feb 29, 2024
Guaranty Bank & Trust Launches CommunityFirst Mortgage And Development Program

The program is designed to be an affordable housing and neighborhood inclusivity initiative.

Dec 05, 2023
States Grapple With Racist Language In Real Estate Deeds

Some states let homeowners erase language. One state wants to erase its effects.

Nov 16, 2023
Widespread Housing Discrimination Persists In U.S.

Redfin Survey shows Black, Hispanic, Asian, and LGBTQ+ communities continue to face bias during home searches, despite protective federal laws.

Sep 28, 2023
Change Lending Wins Temporary Reprieve On Decertification

Judge allows major loan originator to maintain its offerings until December, challenging CDFI Fund's move based on alleged miscalculations.

Sep 15, 2023