Veterans United seeks dismissal of VA impersonation, steering lawsuit

Veterans United Home Loans, owned by Mortgage Research Center, filed a motion to dismiss a class-action lawsuit that accuses the lender of falsely presenting itself as affiliated with the federal government and steering borrowers toward more costly loans.

The lender argues that the plaintiffs failed to present “any concrete and particularized injury” and to state a claim. Attorneys for the plaintiffs declined to comment.

The original complaint alleges the private, for-profit corporation misled homebuyers into believing it is connected to the U.S. Department of Veterans Affairs (VA). It claims that multiple real estate agents and loan officers say they routinely lose business because borrowers believe they must use Veterans United since it’s part of the VA.

The company was founded and is run by three individuals with no military service records, the original complaint states.

In its motion to dismiss, Veterans United includes two screenshots of its website — one attached to the original complaint and another to the motion itself — demonstrating that its site features a disclaimer stating it is not a federal agency. Notably, the disclaimer in the screenshot attached to the original complaint appears smaller.

The motion to dismiss was filed Monday in the U.S. District Court for the Western District of Missouri by Veterans United Home Loans, Realty Search Solutions (dba Veterans United Realty) and Mortgage Research Center.

The plaintiffs — homeowners who obtained loans from Veterans United between 2022 and 2025 — allege violations of the Real Estate Settlement Procedures Act (RESPA).

They say Veterans United distributes leads to preferred agents who, upon closing a home sale, pay the company roughly 35% of their commission (usually part of 3% of the transaction fee). Agents who do not refer loans back to Veterans United allegedly stop receiving leads. The plaintiffs claim Veterans United loans are more costly and carry higher interest rates compared to what homebuyers could obtain with other lenders

In its motion, Veterans United argued the RESPA rule exempts cooperative brokerage and referral arrangements. The lender claims the plaintiffs failed to plead the statutory requirements for liability — including any referral, thing of value or charge paid by them — and that some plaintiffs extrapolated the one-year limitations period.

The lender also argues the plaintiffs made a copy-and-paste error from other pending cases by claiming quota violations without alleging any actual referral quotas exist.

Additionally, Veterans United pushed back against a claim regarding violations of the Missouri Merchandising Practices Act, noting the transactions occurred outside the state. Regarding a common-law unjust enrichment claim, Veterans United said the plaintiffs do not allege they conferred any benefit on the defendants.

Veterans United argues the plaintiffs seek recovery for conduct covered by a contract and that the claims are based entirely on deficient RESPA allegations. Additionally, the motion notes the plaintiffs sued the wrong entity — Realty Search Solutions instead of Realty Search Solutions Network — and incorrectly labeled Veterans United Realty a “shell company” when the correct firm actually employs hundreds of licensed agents.

Chad Moller, corporate communications manager at Veterans United, told HousingWire in a statement that this “meritless lawsuit gets next to nothing right. It’s filled with nonsensical allegations and cut-and-paste complaints from lawsuits filed against other mortgage lenders — none of which hold up to common sense, let alone legal scrutiny.

“To be crystal clear, Veterans United Home Loans and Veterans United Realty have never held themselves out as the VA or any other government agency. Never.”

Attorneys representing the plaintiffs said they filed claims after speaking with roughly half a dozen real estate agents and loan officers across the country who have firsthand experience with VA home loans.

“First, we believe Veterans United has engaged in blatantly illegal practices that have harmed homebuyers through predatory loan practices,” Steve W. Berman, managing partner and co-founder of Hagens Berman, said in a statement when filing the lawsuit. “Second, Veterans United has sought to deceive our nation’s military servicemembers by masquerading as affiliated with the U.S. Veterans Administration.”

The plaintiffs have until the end of April to respond to the motion to dismiss but the deadline can be extended upon request. The complaint states that the total amount in controversy exceeds $5 million.

Hagens Berman also represents clients in a case involving Rocket Companies, following settlements tied to real estate brokerage commissions that totaled more than $1 billion.