A Michigan federal judge last week granted partial summary judgment to UWM in its case against America's Moneyline, a brokerage accused of violating the ultimatum. The since-defunct brokerage admitted to selling numerous loans to both UWM and Rocket Cos.' Rocket Pro TPO, one of the wholesale competitors targeted by UWM's initiative. 

U.S. District Judge Laurie Michelson was unswayed by AML's defense that it didn't violate its agreement with UWM, following a series of discussions between the companies in 2021. UWM sued AML in February 2022, and at one point sought $1.9 million in liquidated damages for 380 loans AML sold to Rocket during the disputed All-In window. 

It's unclear what specific damages UWM seeks today. A spokesperson for the company Monday noted each lawsuit targeting All-In has failed. 

"From the beginning, we have committed to defending our contractual rights and the broker channel, and these legal victories, including the most recent with AML, will continue to set a new standard for the remaining ongoing cases and further highlight that UWM's All In initiative remains legal," the statement read. 

Attorneys for AML didn't return requests for comment Tuesday. 

Brokerage's dispute with UWM brewed for a year

UWM introduced its All-In agreement in March 2021, barring its broker partners from doing business with either Rocket or wholesale player Fairway Home Mortgage. America's Moneyline claims it didn't initially sign onto the initiative that spring but it was assured by UWM management that it wouldn't be penalized for continuing to work with both UWM and Rocket.

The brokerage later agreed to All-In that June, and alleges UWM continued to allow it to sell to both wholesale lenders. UWM reneged on its promises that December, and sued AML when it didn't agree to stop working with Rocket.

Case filings state AML sold around 1,450 mortgages to UWM and 1,700 to Rocket between March 2021 and March 2022. UWM updated its ultimatum in late 2021 to require brokers to pay $5,000 per closed loan with Rocket. 

Judge Michelson found AML did agree to the All-In terms when it continued to sell loans to both UWM and Rocket, despite UWM's alleged promises. The magistrate also rejected the brokerage's claim that it canceled its wholesale agreement with UWM that summer, citing a lack of evidence of a termination by AML leadership. 

AML says other brokerages violated All-In without penalty

In a February filing, counsel for AML shared mortgage data showing three other brokerages who sent dozens of loans to both Rocket Pro TPO and UWM, apparently without being sued by UWM. The lender throughout the AML suit denied a request to produce documentation about its All-In initiative or other related information. 

A UWM spokesperson Monday said there were no exceptions to the All-In addendum.

The judge last week also denied UWM's motion to enforce liquidated damages prior to its October amendment, which had upped the severity of the penalty. A hearing in the case is not currently scheduled.

The megalender has secured at least one five-figure settlement with an alleged All-In violator, and its lawsuits against two other brokerages survived dismissal bids earlier this spring. Another firm which filed an antitrust suit against UWM over All-In lost its fight in a federal appeals court earlier this year.