Ohio Attorney General Dave Yost has filed a lawsuit against United Wholesale Mortgage (UWM), alleging the Michigan-based lender misled borrowers by misrepresenting the independence of mortgage brokers.
The complaint, filed in Montgomery County Common Pleas Court, claims UWM used a network of brokers — 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,” Yost said. “This predatory business practice has no place in Ohio.”
From 2021 to 2023, UWM originated approximately $605 million in loans to Ohio residents through these brokers, including $215 million from 50 brokers in 2023 alone. According to the state, 99% of those brokers' deals went back to UWM.
The suit argues that consumers were denied genuine independent advice. “Rather, they were ensnared in UWM’s scheme,” it reads.
Yost’s lawsuit has drawn sharp criticism from leaders in the wholesale mortgage industry, who argue it unfairly targets independent brokers instead of addressing broader issues in retail lending. Mike Kortas, CEO of Nexa Mortgage, defended the wholesale model and questioned the lawsuit’s focus. “David Yost needs to check his agenda and the people of Ohio need to check David Yost,” Kortas said. “He’s attacking brokers in the wholesale community when he should be going after retail lenders.”
Kortas also challenged the notion that lower rates always equal better deals: “The best rate in the world doesn’t mean it’s a better deal. Borrowers want to close on time.”
Yost’s office is seeking consumer restitution, civil penalties, and a court order requiring UWM to comply with state laws, including the Consumer Sales Practices Act and Residential Mortgage Lending Act.
In response to the lawsuit, a UWM spokesperson sent the following statement: "We had no prior knowledge or warning of this lawsuit filed by the Ohio Attorney General, which is in and of itself suspicious. It essentially 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."
"In response to that lawsuit, we are seeking sanctions against the law firms that filed it, and have moved to dismiss the claims," the spokesperson continued. "We will take similar actions against this PR stunt by the Ohio Attorney General, and will continue to defend these allegations to the fullest extent permitted by law. UWM stands with the thousands of independent mortgage brokers who serve the unique needs of borrowers across the country."
Updated 4/17/2025: This story has been updated to include comments from Mike Kortas.
