Veterans United Home Loans has been hit with a class action lawsuit that accuses the lender of making false claims regarding its ties to the Department of Veterans Affairs while steering borrowers into costlier mortgages.
ABC 17 News reports the lawsuit, filed on Feb. 19 by three veterans in the Western District Court of Missouri, accuses the company of two counts of violating the federal Real Estate Settlement Procedures Act (RESPA) and Missouri’s Merchandising Practices Act, along with claims unjust enrichment. The lawsuit complained the company’s website said it was “The Nation’s #1 VA Lender,” arguing that was intended “to fool home buyers into believing that it is part of, or affiliated with, the VA.” Veterans United’s acknowledgement that it was “not a government agency” runs in tiny print on the website, the lawsuit added.
Furthermore, the plaintiffs alleged Veterans United Home Loans pointed buyers to a network of “preferred agents,” not knowing the agents gave Veterans United Home Loans a 35% kickback and steered the buyers back to Veterans United Home Loans. The plaintiffs claimed the company’s loans were more expensive and had higher interest rates compared to other VA loan originators.
A spokesperson for the lender issued a statement that said, “For 24 years we have been committed to serving Veterans and military families with love, care and respect. We’re aware of the lawsuit that was filed. We deny the accusations and look forward to disputing this through the legal process. Because this is pending litigation, we can’t comment further.”
