Rocket Alleges UWM Targeted Mr. Cooper Borrowers

Rocket Mortgage has filed an amended complaint alleging that United Wholesale Mortgage (UWM) engaged in a targeted campaign to solicit borrowers from Mr. Cooper, a mortgage lender. The core of Rocket's claim is that UWM provided its network of mortgage brokers with specific lists that identified individual loans originated by Mr. Cooper. This practice, according to Rocket, was designed to encourage brokers to actively pursue and refinance these identified Mr. Cooper loans, thereby poaching customers.

Rocket's legal filing details that UWM's alleged actions constitute unfair competition and tortious interference with contractual relations. The company asserts that UWM's strategy involved leveraging proprietary information about Mr. Cooper's loan portfolio to gain a competitive advantage. By equipping brokers with these targeted lists, UWM aimed to disrupt Rocket's business relationships and redirect borrowers to its own platform. Rocket argues that this method goes beyond standard competitive practices and involves the misuse of information to directly undermine a competitor's customer base.

This legal dispute stems from an ongoing rivalry between Rocket Mortgage and UWM, two major players in the U.S. mortgage industry. UWM, a wholesale lender, operates by providing loan origination services to mortgage brokers, who then work directly with consumers. Rocket Mortgage, conversely, primarily operates as a retail lender, originating loans directly to consumers, though it also has wholesale operations. The amended complaint suggests that UWM's alleged actions were a deliberate attempt to gain market share by directly targeting a competitor's existing loan book, rather than competing solely on service or pricing.

The specifics of the lists provided by UWM to its brokers are central to Rocket's case. While the exact nature and source of these lists are not fully detailed in the public filings, Rocket implies they contain sensitive data that would allow brokers to identify and approach Mr. Cooper borrowers with tailored refinancing offers. Rocket contends that this practice is not only unethical but also potentially illegal, as it may violate various business laws and regulations concerning fair competition and data privacy. The company seeks damages and injunctive relief to prevent UWM from continuing these alleged predatory practices.