UWM Sues Top Broker Atlantic Trust Mortgage For Violating Broker Ultimatum Agreement It Makes All Brokers

UWM SuesNearly three years have passed since United Wholesale Mortgage (UWM) issued an ultimatum to its broker partners. The ultimatum makes it clear that brokers must choose between UWM and competitors. Now, UWM has now taken more legal action to enforce this directive.

The complaint alleges that Atlantic Trust submitted at least $355,000 worth of loans to competitors. UWM alleges this violated their exclusivity agreement Atlantic Trust had with United Wholesale Mortgage.

UWM’s lawyers say Atlantic Trust needed to terminate their relationship with UWM before engaging with their competitors.  

The complaint makes the claim that: 

“This decision was made by UWM knowing it may result in ending relationships with existing Broker Partners. But it was necessary to protect the long-term viability of the wholesale mortgage channel.”

UWM spokesperson Nicole Roberts also told the media:

“As we’ve said from the beginning, All-In was put into place to help protect independent mortgage brokers and consumers across the country, and it has been a massive success. We have over 11,000 broker partners who are All-In with UWM and we continue to grow the wholesale channel by educating consumers across America on how to get a faster, easier and cheaper mortgage. Unfortunately,  Atlantic Trust Mortgage is one of the companies who signed a contract and then knowingly breached it, therefore we will follow the agreed upon contract and win damages.”

Roberts said Atlantic Trust is “one of very few companies we have found that has knowingly breached the contract.” She added that they would continue to enforce the initiative.

Atlantic Trust said it does not comment on pending litigation.

UWM Sues Other Brokers

UWM Sues
UWM CEO, Mat Ishbia

United Wholesale Mortgage filed a similar case in December 2023. The Michigan based lender sued Arizona broker  Madison Atrina LLC.

They accused the Arizona broker of sending at least 84 loans worth $420,000 to UWM’s rivals. Madison Atrina LLC who does business as District Lending has not yet responded in court.

United Wholesale Mortgage is seek compensatory damages, attorney fees, court costs, and other expenses.

In March 2021, UWM’s CEO, Mat Ishbia launched the “All In” initiative.  The initiative urged brokers to cease dealings with Rocket and Fairway.

UWM also claimed these lenders hindered broker growth. As a result of participating in the “All In” initiative, brokers agreed to the initiative by signing exclusivity agreements with UWM.

UWM spokesperson Nicole Roberts also told the media:

“As we’ve said from the beginning, All-In was put into place to help protect independent mortgage brokers and consumers across the country, and it has been a massive success. We have over 11,000 broker partners who are All-In with UWM and we continue to grow the wholesale channel by educating consumers across America on how to get a faster, easier and cheaper mortgage. Unfortunately,  Atlantic Trust Mortgage is one of the companies who signed a contract and then knowingly breached it, therefore we will follow the agreed upon contract and win damages.”

Roberts said Atlantic Trust is “one of very few companies we have found that has knowingly breached the contract.” She added that they would continue to enforce the initiative.

Also Check Out These Other Articles About United Wholesale Mortgage On MFI-Miami.com:

United Wholesale Mortgage Declares War On Rocket Mortgage

UWM Sues Mortgage Broker For Sending Loans To Rocket Mortgage

 

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