Veterans United seeks dismissal of amended RESPA class-action complaint

Veterans United Home Loans and its real estate brokerage affiliate are pushing back against an amended class-action lawsuit that accuses the companies of operating an illegal kickback scheme by misleading consumers about government affiliation and using “Hagens Berman, who represents the plaintiffs, did not immediately respond to a request for comment.

The lawsuit names Mortgage Research Center (doing business as Veterans United Home Loans) and Veterans United Realty (VUR), along with its marketing subsidiary Realty Search Solutions, as defendants. The amended complaint brings claims of Real Estate Settlement Procedures Act (Addressing the “bait-and-switch” rate claims, the defense said just one named plaintiff, Scott Brickey, claims his rate suddenly increased at closing. The defendants argued Brickey failed to detail what he actually paid versus prevailing market rates or whether he qualified for better terms elsewhere, noting he received standard disclosures and was free to shop around for other lenders.

The companies denied claims of deceptive marketing regarding their VA relationship. Moller said that the plaintiffs’ attorneys unsuccessfully scoured the internet — including websites, social media, emails and brochures — when looking for instances of the companies holding themselves out as the VA.

“They could not find a single instance. That is because VUHL and VUR have never done so. Never,” he said.

RESPA defense

Regarding the RESPA claims, Veterans United argues the referral arrangement between VUR and its network agents falls within a safe harbor for “cooperative brokerage and