The litigation, in part spurred by an explosive report by Hunterbrook Media,

accuses the wholesale lender of orchestrating a scheme in coordination with brokers to cheat borrowers "out of billions of dollars in excess fees and costs."

UWM filed two motions in mid-October, one to fully dismiss the case and another for the Michigan federal court to strike the class allegations even if the court is "not inclined to dismiss the amended complaint in its entirety," the lender wrote Oct. 15.

In its motion to throw out the case, the wholesale lender argues the suit is an iteration of previous arguments pegged against it by The Okavage Group and America's Moneyline. Both brokerages challenged UWM's All-In initiative, which prevented brokers from doing business with Rocket Mortgage and Fairway Independent Mortgage Corporation.

The putative class action "is a transparent attempt to revive legal theories that two courts have already rejected and smear United Wholesale Mortgage's reputation for the benefit of speculators," the lender's motion to dismiss read.

UWM asserts that the plaintiff's claims are moot for several reasons, including that their arguments are prohibited by the terms of their mortgage agreements and that the RICO claims are insufficient due to a lack of specific facts.

"The lawsuit is just as baseless as the others," UWM added. "The court should put

an end to this coordinated effort to tarnish UWM's reputation, grant Defendants'

Motion, and dismiss this action without further leave to amend."

Regarding striking class certification, the megalender argues that state laws differ and plaintiffs who reside in four states, California, Florida, North Carolina and Tennessee, cannot seek to certify classes and pursue claims under laws of other states where they have not lived or suffered injury.

An attorney representing the plaintiffs could not immediately be reached Friday.

The original complaint, lodged by law firm Boies Schiller Flexner LLP, relies heavily on the assertion that UWM's ultimatum has contributed to borrowers being deprived of cheaper loan options because brokers cannot freely shop around. 

UWM is being accused of violating a number of state consumer protection laws, the 

Real Estate Settlement Procedures Act and racketeering, among other allegations.

The Michigan federal court is expected to reply to UWM's motions by Dec. 12, 2024, legal filings show.