Overview
- Rocket Mortgage, which filed the complaint Thursday in New York state court, says United Wholesale Mortgage ran targeted refinance drives that violated a promise not to solicit borrowers tied to loans UWM sold to Mr. Cooper.
- The suit says Mr. Cooper bought three mortgage servicing rights bundles from UWM between January and June 2024 for $773 million, covering about 182,000 loans with $65 billion in balances under a broad clause that barred UWM and its brokers from targeted solicitations.
- Rocket cites UWM’s Refi75 rate promotion in September 2024, its KEEP AI tool that pushed tailored refi offers to past customers, and a March 2025 “Refi Shield 100” discount tied to a broker video from CEO Mat Ishbia urging refinances of loans sold to Mr. Cooper.
- Rocket alleges prepayments on the affected loans ran about 2.5 times higher than comparable pools, cutting servicing income by nearly $100 million because fees on mortgage servicing rights fall when borrowers refinance early.
- UWM called the complaint baseless and said it will defend the case, which could shape how non‑solicitation promises in servicing sales are enforced and how lenders use broker incentives and AI tools in future refi campaigns.