The Okavage Group filed an antitrust suit against UWM in 2021 over the megalender's ultimatum for brokers working with competitors Rocket Cos. and Fairway Independent Mortgage Corp. The brokerage, led by Dan O'Kavage, refused to sign the ultimatum because Fairway and Rocket often offered better deals for its clients, according to court filings. 

A Florida district court last September dismissed the brokerage's lawsuit, as judges suggested the plaintiff failed to allege a conspiracy between UWM and industry brokers. The Okavage Group appealed that ruling last year, but it was defeated this week as the appeals court justices affirmed the lower court's decision. 

The three judges of the U.S. Circuit Court Eleventh District did not opine further in their 1-page decision. The smaller firm could appeal that ruling to the Supreme Court, which is highly unlikely to hear the case.

A spokesperson for UWM said Thursday the ruling is a clear and resounding rejection of the baseless claims brought against the company. 

"At every level, the courts have upheld the integrity of the legal process and confirmed that these allegations had no foundation in fact or law," the statement said.

UWM's All-In continues to survive scrutiny

Counsel for the Okavage Group disputed a lower court's assessment of their complaint, which painted All-In as a "hub-and-spoke" conspiracy between the lender and brokers. The plaintiff also cited comments by UWM President and CEO Mat Ishbia about the ultimatum and its purported success as evidence of a scheme.

In a 74-page response filed in February, UWM characterized the Okavage's legal maneuvers as publicity stunts. It supported All-In as a protection for the wholesale channel, as Rocket and Fairway were originating loans through brokers before converting their customers to their retail channels. Fairway has since exited the wholesale channel. 

The Okavage Group in the lower court fight also attempted to incorporate the incendiary accusations against UWM in a Hunterbrook Media report last April. A District Court judge said that article's contents wouldn't fix the deficiencies in the brokerage's complaint. 

A complaint against UWM regarding the Hunterbrook findings remains pending. Separately, the Ohio attorney general sued the Pontiac, Michigan lender in April, raising similar accusations of predatory business practices and "loyalist brokers".

Another challenge to All-In by Southern California-based America's Moneyline also remains pending in a Michigan federal court. UWM meanwhile has notched early victories in lawsuits accusing two other brokerages of violating the ultimatums, and reached a $40,000 settlement with a separate company in 2023.

The company in a recent first quarter earnings cited Inside Mortgage Finance data showing it had a 42.4% wholesale market share last year, far ahead of Rocket Mortgage's 10.4% share and PennyMac Financial's 3.1% share.