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The Mortgage Industry Faces a Wave of Lawsuits: What You Need to Know
Setting-up:
The mortgage industry is no stranger to legal battles, but recent developments suggest that the worst is yet to come. With lawsuits targeting major players like Quicken Loans, Nexa, and The Real Mortgage Brokerage, it’s clear that the industry is facing a new era of legal challenges. In this blog post, we’ll take a closer look at these lawsuits and what they mean for the future of the mortgage industry.
Rocket Mortgage Sued for Violating the Telephone Consumer Protection Act:
According to a recent lawsuit filed in the U.S. District Court for the District of Arizona, Rocket Mortgage (a subsidiary of Quicken Loans) is accused of violating the Telephone Consumer Protection Act. The plaintiff, Kellie Deits, alleges that despite requesting not to be contacted again after an initial unsolicited call, she received at least 27 more calls from the same telephone number over the next 10 days.
While some may argue that this level of persistence is admirable, it’s important to remember that there are legal boundaries that must be respected. Loan officers should take note of this case and ensure that they are complying with all relevant laws and regulations when contacting potential clients.
Nexa Faces Allegations of Steering Business to UWM:
Nexa, the largest brokerage in the country and the largest provider of loans to United Wholesale Mortgage (UWM), is facing a lawsuit alleging that it has been steering business to UWM at the expense of its clients. While Nexa argues that other lenders send a larger percentage of loans to UWM, the lawsuit contends that this practice has cost Nexa’s clients a significant amount of money.
It’s worth noting that if Nexa is found guilty of these allegations, it could have far-reaching implications for the entire mortgage industry. After all, many credit unions, independent bank platforms, FDIC-insured banks, and brokerages could be accused of similar practices.
The Real Mortgage Brokerage Settles Lawsuit for $9.25 Million:
In another high-profile case, The Real Mortgage Brokerage recently agreed to pay $9.25 million to settle a lawsuit. While the details of the case have not been made public, it’s clear that legal troubles are becoming increasingly common in the mortgage industry.
The Need for Unity in the Face of Legal Challenges:
As these lawsuits continue to mount, it’s crucial that the mortgage industry comes together to address these challenges. Infighting and bickering will only serve to weaken the industry as a whole, making it more vulnerable to legal attacks.
It’s time for industry leaders to put aside their differences and work together to develop strategies for navigating this new legal landscape. By presenting a united front and adhering to best practices, the mortgage industry can weather this storm and emerge stronger than ever.
Conclusion:
The recent wave of lawsuits targeting the mortgage industry is a wake-up call for all professionals in this field. By staying informed about these cases, adhering to legal and ethical guidelines, and working together to address common challenges, the industry can overcome these obstacles and continue to serve the needs of home-buyers across the country.
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