By punting on this GSE case, the appeals court effectively ends shareholders’ constitutional and Administrative Procedures Act claims. Now, all eyes turn to a breach of contract battle in district court.
America’s Moneyline claims officials of United Wholesale Mortgage had assured the broker that provisions of the controversial “all-in” agreement wouldn’t be enforced.
The agreement restricts broker partners from sending loans or applications to Rocket Mortgage and Fairway Independent Mortgage. The California-based broker said the provision is illegal and anticompetitive.
The Federal Housing Finance Agency’s OIG found that the $250,000 “retention award” in question could amount to the payment of a “bonus” in violation of the STOCK Act.
It’s not easy to bring multi-state enforcement actions, yet regulators from 44 states signed consent orders with 441 loan officers who lied about having completed required annual continuing education courses.
Two nonbanks are trading accusations tied to the pilfering of staff, at least that’s how it started. Eventually, the case could be settled out of court but not before some damaging allegations get aired in public.