Class Action Filed Against United Wholesale Mortgage
Attorney Scott Glovsky Files Class-Action Lawsuit Against United Shore Financial Services
On Friday, December 11, 2020, the Law Offices of Scott Glovsky filed a class-action lawsuit against United Shore Financial Services, LLC d/b/a United Wholesale Mortgage in the United States District Court for the Eastern District of Michigan.
What is this class action about?
The plaintiffs are mortgage brokers in California who contracted with United Wholesale Mortgage (“UWM”) for the purpose of providing customers for UWM’s mortgage business. Despite having faithfully executed their duties under the contracts, in March 2020 UWM unilaterally breached the contract by charging plaintiffs for the return of commissions that were rightfully earned under the UWM contracts. UWM stated that the return of earned commissions was justified because the customers refinanced their loans within 365 days of closing with UWM. However, the express terms of their contracts permit UWM to recoup commissions only if a refinancing occurred within 180 days of closing the loans.
Accordingly, UWM’s unilateral change to 365 days from 180 days more than doubled the time in which it could legally seek the return of commissions from the plaintiff brokers. UWM’s change was done without the consent or approval of these brokers, and breached their contracts. In their class action lawsuit, the brokers are asking the court to declare that UWM’s actions are wrongful, and to award damages to the brokers and all those similarly situated.
You can read the class action complaint here.
About the Law Offices of Scott Glovsky
The Law Offices of Scott Glovsky has represented injured consumers and victims of wrongful business practices for more than the past two decades. We get justice for our clients and hold the wrongdoers accountable.
For more information, contact [email protected].