Judge Awards $325k To Uwm In ‘all In’ Broker Dispute

United Wholesale Mortgage (UWM) secured a $325,000 award in a three-year legal dispute with California-based brokerage firm Kevron Investment over alleged violations of its “All In” broker initiative. 

UWM sued Kevron in February 2022, claiming the brokerage breached its agreement by sending loans to Rocket Mortgage and Fairway Independent Mortgage despite the company’s prohibition on doing business with these rivals.

Judge Laurie J. Michelson of the U.S. District Court for the Eastern District of Michigan said the award includes “liquidated damages, attorney’s fees, costs and expenses.” In a court filing on Tuesday, Michelson added that both parties have “mutually agreed to waive any right of appeal” regarding the decision or any related orders.

“The consent judgment and the Court’s prior ruling say it all: the truth and facts prevailed,” a UWM spokesperson told HousingWire in a statement. “From day one, we’ve been crystal clear about the facts of this case, and Kevron’s willingness to stipulate to this judgment in light of the Court’s recent decision confirms exactly what we said all along.

“We’re pleased — but not surprised — by this outcome. The evidence was on our side, and the Court saw it the same way.”

Kevron representatives did not immediately respond to a request for comment.

UWM’s “All In” initiative, launched in March 2021, requires brokers to choose between doing business with UWM or with Rocket and Fairway. Violations could result in fines of at least $5,000 per loan or $50,000, whichever is greater. 

According to the lawsuit, Kevron — which began originating loans with UWM in 2019 — submitted at least 22 loans to Rocket and Fairway after the policy took effect. UWM initially sought $110,000 in damages, fees and costs.

In a similar case, UWM sued Mid Valley Funding in February 2022, seeking $310,000 tied to 62 loans allegedly sent to the same competitors. That case was settled in June 2023, with Mid Valley agreeing to pay $40,000 to resolve the claims.