Plaintiffs Oppose Veterans United Motion to Dismiss RESPA Suit

Fifteen named plaintiffs are opposing a motion to dismiss an amended class-action lawsuit filed against Veterans United Home Loans, the largest lender of Department of Veterans Affairs (VA) mortgages. The plaintiffs allege that Veterans United, along with its real estate arm Veterans United Realty, engaged in an illegal kickback and steering scheme that directed borrowers toward overpriced loans. The lawsuit, overseen by the U.S. District Court for the Western District of Missouri, initially began in February and accuses Veterans United of misleading homebuyers into believing it is directly affiliated with the VA. This misconception, according to court documents, causes real estate agents and loan officers to lose business as prospective borrowers feel obligated to use Veterans United for financing.

Veterans United Home Loans and Veterans United Realty filed a motion to dismiss the original complaint in April. A company spokesperson stated at the time that the lawsuit was "meritless" and "gets next to nothing right." The plaintiffs are represented by the law firm Hagens Berman, which has previously been involved in significant litigation against companies like Zillow and Rocket Companies, securing over $1 billion in settlements related to real estate brokerage commissions.

In May, the plaintiffs filed an amended complaint, expanding the number of named plaintiffs from three to 15 and doubling the number of claims from four to eight. These claims include two counts of violating the Real Estate Settlement Procedures Act (RESPA), as well as violations of consumer protection laws in Missouri, Illinois, New York, Ohio, and Texas. The amended complaint reiterates the core allegations of illegal kickbacks and steering practices, aiming to hold Veterans United accountable for allegedly funneling borrowers into disadvantageous loan terms.