UWM accuses Atlantic Trust of ignoring ‘all-in’ ultimatum

United Wholesale Mortgage Company sues Atlantic Trust Mortgage Company for violating its Controversial All-In Agreement.This is second such legal action Enforcement of UWM’s ultimatum may have increased since December.

The lawsuit filed by the wholesale giant alleges that Atlantic Trust made 71 loans to Rocket Mortgage or Fairway Independent Mortgage since December 2022, “intentionally and directly defeating the entire purpose of All-In Intuitive.” As a result, UWM is seeking $355,000 in damages, according to the lawsuit filed Jan. 26 in federal court in Michigan.

The wholesale lender noted that the default caused it multiple harms, “including, but not limited to, enabling Atlantic Trust to benefit from UWM’s investments and services provided as a brokerage partner, including UWM’s proprietary technology.” . ”

A UWM spokesperson warned that UWM will continue to enforce violations of the ultimatum.

“Atlantic Trust Mortgage is one of the companies that knowingly breached the contract after signing it, so we will follow the contract as agreed and win compensation,” a spokesman for the company said on Monday. “This company is one of those companies that knowingly breached the contract after signing it.” [the] We find very few companies knowingly breach contracts and we will continue to hold people accountable for the contracts they sign. ”

An Atlantic Trust executive disputed some of UWM’s allegations, claiming that their company never signed the full addendum in December 2022, which technically should have invalidated the contract. Additionally, the executive claimed that UWM knew Atlantic Trust continued to do business. Rocket said the wholesale company was still trying to “earn its business back” before filing the lawsuit.

Headquartered in Jacksonville, Florida, Atlantic Trust was founded in 2003 by Scott Goldstein. Court documents show the company currently has more than 15 mortgage originators.

A similar lawsuit was filed against District Lending in late December.

UWM claims that since committing to UWM’s All-In program in March 2021, the independent mortgage broker has originated 84 loans with Rocket or Fairway. The lending giant claims District Lending flouted their agreement, causing losses of at least $420,000. The case is still pending.

In addition to enforcing the ultimatum, the University of Wisconsin also polices relevant content shared online. Stop notifications Former broker partner and Client Direct Mortgage owner Ramon Walker is demanding that the sponsor cease all inappropriate use of UWM’s intellectual property and remove any false and false claims from a Facebook group he created titled “Rocket Pro TPO vs. UWM.” Defamatory content.

The formation of the group, which came to fruition in November, was “untimely”.[er]”And threatening to interfere with the relationship between UWM and its brokers is impermissible,” the company’s January notice read.

The group’s 4,000 users discuss broker-related topics, including loan products offered by Rocket or UWM, the latter’s lenders’ ultimatum, a comparison of the two companies’ technology, and United States Federal Reserve Interest rate policy.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button