America's Moneyline cites new evidence in its countersuit against UWM

America's Moneyline, one of the first mortgage brokerages to be sued by United Wholesale Mortgage for allegedly flouting its All-In ultimatum, is asking a Michigan federal judge to reconsider quashing its antitrust countersuit against the wholesale lender, citing new evidence.

The brokerage, which alleges UWM is seeking to monopolize the wholesale mortgage lending industry, outlines in its motion to file a supplemental counterclaim that developments such as Fairway Independent Mortgage exit from wholesale lending and details from Hunterbrook's investigation add additional juice to its suit.

In late March, Michigan-based U.S. District Judge Laurie J. Michelson initiated the tossing of AML's countersuit, using a previous decision by a federal judge in Florida as the premise. That decision involved an identical countersuit against UWM by the Okavage Group, which was thrown out because it failed to provide proof that the ultimatum was anticompetitive.

Despite Michelson siding with Florida's U.S. Magistrate Judge Laura Lothman Lambert, she left the door open for AML to submit more evidence.

Hunterbrook Media's report, which argues that there's a link from UWM's ultimatum to an increase in borrower costs and a decrease in choice, directly addresses the lack of proof that Michelson noted in her motion to dismiss, the mortgage brokerage argued in its motion filed May 6.

Additionally, the Hunterbrook story said that the number of brokers sending 99% or more of their mortgage to UWM doubled since its ultimatum. That is "specific evidence of actions against interest," which Michelson said was lacking in AML's complaint, the company said.

Regarding Fairway's exit from wholesale, the brokerage argues this is "directly relevant to both the issue of competitive effects as well as whether the impact of the boycott was sufficient to justify per se illegality." 

"The exit is evidence that the boycott did 'cut off access to a supply, facility or market necessary to enable [Fairway] to compete,'" the complaint reads.

UWM did not immediately respond to a request for comment. 

AML could not be contacted at the time of publication. The broker's website is no longer functioning and it currently sponsors only one loan officer, per the Nationwide Mortgage Licensing System.

Meanwhile, Mortgage Moneyline, an entity created two years ago by AML's owner Shawn Nevin and Dean Lob, the company's former chief operating officer, has an active website and over a dozen AML employees registered. Mortgage Moneyline was created in May 2022, three months after UWM filed its $2.8 million suit, documents show.

Three other mortgage brokerages are embroiled in litigation pegged against them by UWM for breaking the All-In ultimatum, with two of those cases filed in the past four months. Another lender, Mid Valley Funding, agreed to settle and pay UWM $40,000 last June, the company confirmed.