United Wholesale Mortgage (UWM) has taken legal action against Ramon Walker and Mortgage Solutions FCB, doing business as Client Direct Mortgage, for breach of contract and trademark infringement.
The lawsuit, filed in federal court in Eastern Michigan, centers around a Facebook page named "Rocket Pro TPO v. UWM," which UWM alleges was used by Walker to improperly advertise and denigrate UWM's services while promoting those of a competitor, Rocket Pro TPO.
Walker, who has since taken down the trademark UWM logo and replaced it with a photo of UWM CEO Mat Ishbia and Rocket Pro TPO's Dan Gilbert, ended his relationship with UWM in December 2023 and received a cease and desist order from the company, along with a request for early payoffs of 12 loans.
The complaint details how, from June 2020 to May 2023, Mortgage Solutions delivered at least twelve loans that were paid off within 180 days of disbursement, with the early payoff balance totaling $124,011. UWM argues that this action not only breached their contract.
The lawsuit goes onto say that Walker misused UWM's trademarked brand, known as "the Mark," which the company has heavily invested in through advertising and promotional efforts since its inception in 1986 and under the trademark since at least 2016.
UWM's lawsuit claims that the UWM mark is "famous and distinctive," and "an invaluable asset of substantial and inestimable worth to UWM." According to the lawsuit, Walker's use of the UWM Mark on his Facebook profile and within the controversial Facebook group was unauthorized and likely to cause confusion or deception among consumers and mortgage industry professionals regarding UWM's endorsement of Walker's services.
The lawsuit further alleges that Walker's actions have interfered with UWM's business relationships, particularly with its brokers, by causing confusion over the services UWM provides. UWM did not consent to Walker's use of the Mark in connection with his Facebook profile or the Facebook group, which is purportedly a forum for "honest and uninfluenced conversations" but, according to UWM, serves primarily to undermine its business.
Walker was unable to comment due to the pending litigation.
The lawsuit is just the latest UWM has filed. Earlier this year, it filed lawsuits against Atlantic Trust Mortgage Corporation and Madison Atrina LLC, which operates as District Lending, for allegedly violating its "All-In" initative and sending loans to Rocket Pro TPO of Fairway Independent Mortgage Corporation, which recently exited the wholesale space.
