Real Estate
Home›Real Estate›Industry›Rocket alleges UWM breached non-solicitation rules tie…
Rocket alleges UWM breached non-solicitation rules tied to Mr. Cooper deal
Rocket says Mr. Cooper bought mortgage servicing rights in 2024 for $773 million, and Rocket estimates damages near $100 million.
Rocket Mortgage filed an amended complaint in New York alleging United Wholesale Mortgage violated nonsolicitation covenants tied to Mortgage Servicing Rights sales to Mr. Cooper Group in 2024, HousingWire reports.
According to Rocket, UWM provided brokers with lists identifying specific loans to target and breached broad contract language that barred UWM and its agents, brokers, and independent contractors from soliciting borrowers to refinance mortgages covered by the loan pools Mr. Cooper purchased.
The amended complaint says Mr. Cooper bought servicing rights in three transactions between January and June 2024 for $773 million, covering roughly 182,000 mortgages with an aggregate unpaid principal balance of about $65 billion.
Rocket alleges the conduct accelerated refinances, citing prepay rates about 2.5 times higher than comparable mortgage pools, and says by December 2025 more than 15,500 loans had been refinanced, with over 48% completed through UWM, which Rocket estimates caused nearly $100 million in damages.