United Wholesale Mortgage is attempting to poke holes in Rocket Mortgage's $100 million servicing lawsuit.
The wholesale leader hinted at its litigation strategy last week as it prepares a
The Detroit lender is seeking $100 million in damages, alleging that UWM's activity led prepayment rates for the Mr. Cooper portfolio to be roughly 2.5 times greater than comparable loan pools. UWM's alleged refinance campaign to target Mr. Cooper loans occurred both before and after Rocket announced its purchase of the servicing giant last spring, according to the lawsuit.
In a joint letter to a New York state judge, UWM previewed its defense ahead of an expected motion to dismiss this week. Among their legal arguments, attorneys for the Pontiac, Michigan lender noted that Mr. Cooper did not sue UWM for its conduct before it was acquired by Rocket.
In reiterating their case, attorneys for Rocket wrote to the judge that UWM's factual disagreements can't be resolved at the pleadings stage.
The sides are likely digging in for what could be a lengthy court battle. In a filing to the New York County Supreme Court, Rocket suggested case deadlines including discovery to wrap up late next year, and for a trial readiness conference in early 2028. Neither UWM nor the court signed on to those dates.
A spokesperson for Rocket referred to the company's latest letter to the court, while neither attorneys nor a representative for UWM returned requests for comment Friday.
UWM and Rocket go toe-to-toe
Mr. Cooper paid $773 million in early 2024 for bundles of UWM mortgages including around 182,000 loans, with an unpaid principal balance of $65 billion, according to Rocket.
In letters to the court last week, the attorneys disputed whether UWM's advertising campaigns were generalized or whether they specifically targeted the Mr. Cooper loans in question. The sides also argued over two of UWM's pricing promotions and its KEEP refinance alert tool:
- Refi75: While UWM claims the program was advertised through general press releases, Rocket contends the competitor made no effort to exclude Mr. Cooper loans.
- KEEP: Rocket says UWM again made no effort to exclude Mr. Cooper mortgages, while UWM says the complaint doesn't plead facts.
- Refi Shield 100: UWM says Rocket doesn't identify an affected loan under the program rolled out in March 2025, while Rocket points to comments by UWM CEO Mat Ishbia targeting Mr. Cooper loans.
Rocket claims it sent UWM a prepayment analysis of the activity in question in February 2025; UWM says that timeline should discount any damages from its Refi Shield 100 offering a month later. Attorneys for the rival noted that Rocket didn't include the analysis, or further details, in its complaint.
In a follow-up letter to the court last week, attorneys for Rocket acknowledged UWM's right to contest its pleadings but emphasized that it adequately pleaded its breach of contract claim.
"Given the serious harm done by UWM's breaches, Mr. Cooper is looking forward to pursuing expeditious discovery so that it can ultimately prove its claims and obtain redress for the harm done to it," wrote Rocket's attorneys.
