United Wholesale Mortgage (UWM) is facing a class action lawsuit, filed by borrowers from three states who are alleging that the company steered “captive” brokers into pushing expensive loans onto homebuyers. Filed on Tuesday in U.S. District Court in Detroit, the suit claims that UWM violated the Racketeer Influenced and Corrupt Organizations (RICO) Act and the Real Estate Settlement Procedures Act (RESPA), essentially alleging that UWM conspired with “corrupted” brokers against homebuyers. Notably, the suit was filed at the same time that UWM was the subject of an investigative piece published by media firm Hunterbrook, alleging that the lender “has potentially committed fraud” and set forth claims akin to those in the lawsuit. UWM, in a statement, described the lawsuit as a “sham” and claimed that a hedge fund affiliated with Hunterbrook was behind it. “UWM will defend these allegations to the fullest extent permitted by law,” said the company’s statement.
American Financial Network (AFN) has announced it is teaming up with software technology company Zavvie, whose offerings include the Cash Offer program that provides contingency-free financing for homebuyers. According to a statement from Zavvie co-founder Lane Hornung, the program creates more loan officer business activity and increases gross commission income by as much as 33%.
Ocwen Financial Corporation has announced plans to change its name to Onity Group Inc. The company will submit a proposal to effect the name change at its annual meeting of shareholders scheduled for May 28. Ocwen’s primary brands, PHH Mortgage Corporation and Liberty Reverse Mortgage, will retain their names at this time. The company expects to begin rebranding PHH Mortgage Corporation and Liberty Reverse Mortgage to Onity Mortgage later this year to align their names with the new name of the company. Subject to shareholder approval, the company expects to begin trading on the New York Stock Exchange under the stock symbol “ONIT” in June 2024.
A&D Mortgage has announced the introduction of temporary buydown options for Fannie Mae’s Manufactured Homes and HomeReady programs. Temporary buydowns reduce the interest rate on a mortgage for a specific period, significantly lowering monthly mortgage payments during the initial years of homeownership. A&D now offers a 3-2-1 buydown (a buydown of 3% in the first year, 2% in the second year, 1% in the third year, then back to the original locked rate in the fourth year for the duration of the term) and a 2-1 buydown (2% in the first year and 1% in the second year, then back to the original locked rate in the third year for the duration of the term).
