"The plaintiffs argued that UWM implemented initiatives designed to limit brokers' ability to shop around for the best deals, despite marketing their independence. Among those were the All-In initiative, which prohibits brokers who work with UWM from also doing business with rivals Rocket Mortgage and Fairway Independent Mortgage Corp., and the Lock-In policy, which requires brokers not to shop after locking a loan, which usually happens at the beginning of the loan process."
"But key to the RICO claim is an understanding of what truly causes Plaintiffs' injuries. Judge McMillion added: As alleged, the false representation would be the proximate cause of Plaintiffs' injuries. But the false representations about shopping the loan originated from the brokers, not UWM. While true, Plaintiffs point to marketing materials and websites that state brokers are independent,' the Court finds that it is the false representation and failure to shop the loan that serves as the proximate cause of Plaintiffs' injuries."
UWM implemented initiatives alleged to limit brokers' ability to shop for the best mortgage deals, including the All-In initiative barring business with certain rivals and a Lock-In policy restricting shopping after a loan lock. Plaintiffs claimed marketing portrayed brokers as independent while UWM cultivated loyalist brokers, causing billions in above-market costs. Judge Brandy R. McMillion dismissed all RICO claims and most RESPA claims, finding plaintiffs did not establish proximate cause because false representations about shopping originated from brokers, not UWM. Two plaintiffs retained some RESPA claims and three plaintiffs retained certain state deceptive trade claims. Plaintiffs allege marketing programs and trips were things of value to brokers.
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