Judge narrows Veterans United suit but lets RESPA claims proceed

A federal judge in the Western District of Missouri granted in part Veterans United’s motion to dismiss a lawsuit from VA borrowers. A federal judge threw out several state consumer protection counts and most RESPA claims as time-barred but preserved key RESPA Section 8 kickback and fee-splitting allegations for three borrowers. Th AI Summary A federal judge in Missouri has dismissed most of the claims brought by 15 borrowers against Veterans United Home Loans and its affiliated real estate brokerage, but allowed Real Estate Settlement Procedures Act (RESPA) allegations to move forward. In an order from the U. S. District Court for the Western District of Missouri , Judge Willie J. Epps Jr. granted in part and denied in part a motion to dismiss from Veterans United and its related entities. The lawsuit names Mortgage Research Center LLC , doing business as Veterans United Home Loans; Realty Search Solutions LLC ; and Realty Search Solutions Network LLC , doing business as Veterans United Realty. The plaintiffs are veterans and military family members who obtained VA loans from Veterans United between September 2018 and April 2026 in Tennessee, Texas, Pennsylvania, Colorado, Ohio, Kansas, Illinois, New York, Missouri, Florida and Virginia. Borrowers allege that Veterans United and its affiliates used a strategy to build VA lending volume: branding and marketing that allegedly suggest a government affiliation with the Department of Veterans Affairs (VA) and a nationwide real estate agent referral network that steers borrowers back to Veterans United for financing while concealing the 35% commission payment.

Judge Epps dismissed five of the eight counts in the amended complaint. He threw out the Missouri Merchandising Practices Act claim, the Illinois Consumer Fraud and Deceptive Business Practices Act claim, the Ohio Consumer Sales Practices Act claim, the Texas Deceptive Trade Practices–Consumer Protection Act claim, and the nationwide unjust enrichment claim. “We are pleased the court dismissed the majority of the counts, including most of the claims and nearly all of the plaintiffs,” said Chad Moller, corporate communications manager at Veterans United. “Veterans United has never held itself out as the VA. We are a private mortgage lender that makes VA loans. We will keep doing the one thing we have always done – earn the trust of Veterans and military families.” Hagens Berman , which represents the plaintiffs, did not immediately respond to a request for comment. The court found that most borrowers’ RESPA claims were filed too late and rejected their arguments for extending the deadline, including fraudulent concealment. Because of that, RESPA claims brought by 12 borrowers were dismissed as time-barred. Still, some claims survived. The judge kept RESPA Section 2607(a) kickback-for-referral claims in Count 1 for two borrowers whose closings occurred within one year of May 4. He also kept RESPA Section 2607(b) fee splits and payment for services not rendered claims in Count 2 for three borrowers.

Those claims allege that real estate agents in Veterans United Realty’s referral network paid about 35% of their commissions — roughly 1.05% of the home sale price — to Veterans United Realty and related companies, even though those companies did not perform any real services in return. “The Amended Complaint alleges that the Defendants who received these kickbacks performed no services in exchange for the payments. … The Court finds these facts sufficient to show a plausible claim for relief under Section 2607(b),” Judge Epps wrote. Veterans United argued that its arrangement with real estate agents falls within RESPA’s safe harbor for cooperative brokerage and referral agreements under Section 2607(c). Judge Epps declined to apply the safe harbor at the pleading stage, finding that whether the exception applies will require factual development in discovery. The court gave borrowers 14 days from the date of the order to amend the complaint. Public filings show how the Ishbia family’s stake in United Wholesale Mortgage and its sports assets underpin a network of loans, according to a Bloomberg report. Mortgage spreads fell to 1.96% and kept rates under 7%, but Iran conflict risk and Fed hawkishness left the 10-year yield near yearly highs. Select a zip code to view market data, or leave blank to see national trends.

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