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Judge dismisses most claims in Veterans United VA loan lawsuit
The court kept RESPA Section 8 kickback and fee-splitting allegations alive for three borrowers, after dismissing other state consumer protection counts as time-barred.
HousingWire reports that a federal judge in Missouri dismissed several state consumer protection counts and most RESPA claims in a lawsuit brought by 15 borrowers against Veterans United Home Loans and affiliated real estate brokerage entities.
According to the complaint and the judge’s order, Judge Willie J. Epps Jr. allowed key RESPA allegations under Section 8 to proceed for three borrowers, while dismissing five of the eight counts in the amended filing. The rejected claims included a nationwide unjust enrichment claim and state law consumer fraud and deceptive trade practice claims.
The lawsuit involves veterans and military family members who obtained VA loans from Veterans United between September 2018 and April 2026 in multiple states. Plaintiffs alleged Veterans United and its affiliates used branding and a real estate referral network to steer borrowers back to Veterans United for financing while concealing a 35% commission payment.
HousingWire also notes that the court found many RESPA claims were filed too late and rejected arguments for extending the deadline. Veterans United said it was pleased most counts were dismissed, adding that it does not hold itself out as the VA and will continue making VA loans.