The O’Kavage Group said this business tactic was unfair and would harm both consumers and the wholesale mortgage market by limiting competition.
However, Judge Wendy Berger of Jacksonville, Fla. District Court, ruled that the plaintiff couldn’t prove that UWM’s agreements with brokers were illegal.
In her ruling, Judge Berger stated, “There are no factual allegations that the brokers were predisposed to concerted action toward a common improper goal.” She also noted that the lawsuit failed to demonstrate significant pressure on brokers to comply with UWM’s terms. As a result, the case was dismissed without prejudice.
“In fact, plaintiff specifically alleges that defendants did not expect such a high rate of acceptance among the brokers,” she wrote. “There are only minimal allegations regarding push back on dissenting brokers and no allegations that there was significant pressure applied between brokers to accept the agreement.”
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Source: mpamag.com