Michigan-based lenders, Mortgage 1 Inc., and Mortgage One Funding LLC., are going toe-to-toe in a trademark infringement lawsuit, filed on January 28 in the U.S. District Court For The Eastern District of Michigan.
The plaintiff, Mortgage 1, has also brought forward claims of unfair competition, unjust enrichment, misappropriation, and the violation of the Michigan Consumer Protection Act as a result of Mortgage One Funding’s “knowing infringement of Plaintiff's Mark.”
Mortgage 1 Inc, located in Sterling Heights, Mich., employs 150 loan officers per the Nationwide Mortgage Licensing System (NMLA) and originated more than 3,000 loans in 2024, amounting to roughly $664 million in funded loans, according to Modex data.
Mortgage One Funding, located in Troy, Mich., employs 16 loan officers, per the NMLS, and originated 658 loans last year, per Modex, amounting to $204.04 million in funded volume.
Since Mortgage 1 Inc.'s inception in 1994, the company has assisted “tens of thousands of families own their dream home,” and generates much of its business via its heavily-trafficked website “https://mortgageone.com,” according to the legal complaint. The plaintiff claims to have used the common law trademark “MORTGAGE 1” and “MORTGAGE ONE” in connection with mortgage services since its founding as well.
Mortgage 1 Inc. alleges —“upon information and belief,” — that the defendant first became incorporated as a Michigan limited liability company (LLC) on May 26, 2021, using the name “JJDA Capital, LLC.” A few months later, the plaintiff claims that “JJDA Capital, LLC” filed a Certificate of Assumed Name for “National Mortgage Team.” Only a few days later, the defendant allegedly filed a different Certificate of Assumed Name for “Mortgage One Funding,” and terminated the name for National Mortgage Team in October 2021.
As of November 2021, per the complaint, a Certificate to the Articles of Organization was filed changing the name JJDA Capital, LLC to Mortgage One Funding, LLC. The plaintiff claims, once again, that “upon information and belief, Defendant was aware of Plaintiff and Plaintiff’s services when Defendant changed its prior names and adopted the entity name Mortgage One Funding, LLC in late 2021.”
Mortgage 1 Inc. claims that Mortgage One Funding knowingly violated trademark laws due to an alleged letter exchange between the two parties over a year before the lawsuit was filed. Through this written exchange, the Plaintiff claims to have warned the Defendant that there was not only a likelihood of confusion, but that it was aware of examples of actual confusion.
In response, the defendant identified a third party federal trademark registration as somehow excusing its infringement. Although the plaintiff acknowledges the existence of this federal trademark registration, it claims that the first party to use a mark in commerce has the strongest trademark rights, even if it does not have a federal registration.
Additionally, Mortgage 1 Inc., included copies of consumer complaints to regulators that were mistakenly sent to it instead of Mortgage One Funding. One customer of Mortgage 1 Inc., relayed in an email, January 14, that Mortgage One Funding was "trying to scam in" on his active refinance application.
Jason Jamoua, CEO and senior loan officer at Mortgage One Funding, have not yet responded to NMP’s request for comment, nor have the attorneys representing Mortgage 1 Inc.
Additionally, Mortgage 1 Inc. Vice President Kathleen Higgins wrote a letter in September 2024 to the Michigan Department of Insurance and Financial Services accusing Mortgage One Funding of using trigger leads in contacting consumers.
“The Mortgage One Funding appears to be a company that purchases a large number of trigger leads. They use these leads to make unsolicited calls and send unsolicited text messages to individuals who recently had their credit pulled by another mortgage lender,” Higgins wrote.
Mortgage 1 Inc., is seeking an order disgorging Mortgage One Funding’s profits, and an order forcing the company to destroy all materials that infringe its trademark.
