UWM says reporter of investigative piece affiliated with Rocket

United Wholesale Mortgage on Tuesday clapped back at allegations made by Hunterbrook Media, again connecting the damaging report to industry rival Rocket, but this time singling out one of the authors of the piece as having worked for a brokerage that sent business to Rocket.

In a message sent to its broker partners, the wholesale lender wrote one of the Hunterbrook Media journalists "worked at a Rocket Mortgage affiliated broker for the last five years and was actively working on this report while employed there." 

Though UWM did not disclose which of the four contributors to the piece that it was referring to, it claimed the broker left their brokerage two months prior to the investigation being published.

The wholesale lender also repeated the disclosure made by Hunterbrook, which stated that the publisher not only shorted UWM stock, but also bought Rocket stock.

"Recently our business, the wholesale channel and our integrity was attacked," UWM wrote in its statement. "Under no circumstances will we stand silent and let anyone lob unfounded accusations against our community."

The venture-backed outlet defended its work Tuesday, but confirmed that Matt Termine, one of the authors of the investigative piece, was indeed an independent mortgage broker who previously worked for a brokerage firm.

"Termine didn't work for Rocket," a press person for Hunterbrook wrote. "He worked for an independent mortgage broker that actually shopped between options. But it sounds like, in UWM's telling, all brokers are just fronts for lender partners."

"Hunterbrook Media's article is based on facts," the spokesperson added in a written statement. "The data revealed that UWM had lied about the independence of its mortgage brokers — and the evidence led to a national class action lawsuit accusing UWM of engaging in a RICO conspiracy to commit "mail fraud" and "wire fraud."

When asked for comment on UWM's Tuesday missive to brokers, Rocket Mortgage once more stated that it did not have any affiliation with Hunterbrook Media and that Rocket Mortgage and its owner, Dan Gilbert, "have no involvement in the deep, detailed 50-page Hunterbrook Media article." 

UWM in its address to brokers also defended its business practices.

"The Hunterbrook attack contains many lies, including there being something wrong with brokers choosing to send most of their business to a specific lender," the wholesale lender said. "If any of our partners get roped into their frivolous lawsuit, UWM will cover your attorneys' fees in connection with these fraudulent claims." 

"Winners win. Losers talk about winners. UWM and our partners are winners…There is one thing this "report" got correct – UWM is No. 1, and it is entirely because of all of you," the wholesale lender added. 

Hunterbrooks investigation alleges over 8,000 independent mortgage brokers sent 99% or more of their loans to UWM in the past year, which could be interpreted as a violation by the brokers of their fiduciary duty to home buyers. The megalender is being accused of violating the Real Estate Settlement Procedures Act (RESPA) and the RICO Act in a Michigan lawsuit lodged after the investigation.