Key facts
- Rocket Mortgage accuses UWM of breaching non-solicitation provisions related to nearly 182,000 mortgages.
- Mr. Cooper purchased these servicing rights from UWM in 2024 for $773 million.
- Rocket alleges UWM's actions led to accelerated prepayment rates and nearly $100 million in damages.
- The amended complaint was filed on August 27 in the Supreme Court of the State of New York.
- Rocket Companies completed its acquisition of Mr. Cooper on October 1, 2025.
Rocket Mortgage has filed an amended complaint in the Supreme Court of the State of New York, accusing United Wholesale Mortgage (UWM) of violating contractual restrictions on soliciting borrowers whose mortgage servicing rights (MSRs) were sold to Mr. Cooper Group. The lawsuit alleges that UWM's actions have caused nearly $100 million in damages.
The amended complaint, filed on August 27, expands on Rocket's original lawsuit from May 2026. It details claims that UWM breached nonsolicitation provisions covering approximately 182,000 mortgages. These servicing rights were purchased by Mr. Cooper from UWM in three transactions between January and June 2024 for $773 million, with an aggregate unpaid principal balance of about $65 billion.
The agreements stipulated that UWM, its agents, brokers, and independent contractors were prohibited from directly or indirectly soliciting borrowers to refinance their mortgages during the life of the loans. General advertising and borrower-initiated refinances were permitted.
Rocket alleges that UWM's conduct led to covered loans prepaying at rates approximately 2.5 times higher than comparable mortgage pools. By December 2025, over 15,500 of the 182,000 loans had been refinanced, with UWM being the largest refinancer at over 48% of these transactions.
The complaint cites several UWM refinance initiatives, including Refi75, KEEP, and Refi Shield 100, as violations. Rocket claims Refi75 offered incentives without excluding borrowers whose loans were sold to Mr. Cooper, and that the AI-powered KEEP system targeted these borrowers. The dispute intensified after Rocket announced its planned acquisition of Mr. Cooper in March 2025. Rocket alleges UWM's CEO, Mat Ishbia, directed brokers to target these loans, even describing it as putting a "bounty" on them and stating he would "lose money just for fun" to acquire loans from Mr. Cooper's portfolio. UWM subsequently introduced Refi Shield 100, offering a 100-basis-point discount.
Rocket also claims UWM provided brokers with lists of specific loans to target, including those in Mr. Cooper's servicing pools. Tim Barry, CEO of LitFinancial, reportedly confirmed his company received such lists. UWM has denied the allegations, calling them "baseless" and "opportunistic."
Rocket Companies completed its $14.2 billion acquisition of Mr. Cooper on October 1, 2025, combining Rocket's origination business with Mr. Cooper's servicing portfolio. The amended complaint asserts a breach-of-contract claim and seeks at least $100 million in compensatory damages, plus interest, attorneys' fees, and costs.