Rocket Mortgage filed a lawsuit against United Wholesale Mortgage (UWM) on May 14, seeking nearly $100 million in damages for allegedly breaching a non-solicitation agreement tied to mortgage servicing rights purchases, according to a complaint filed in the New York Supreme Court’s Commercial Division.
The lawsuit centers on three bundles of mortgage servicing rights that Mr. Cooper Group—which Rocket acquired in October 2025—purchased from UWM for $773 million between January and June 2024. The deals involved approximately 182,000 mortgages with an unpaid principal balance of roughly $65 billion.
As part of the purchase agreements, UWM contractually agreed to refrain from soliciting borrowers to refinance the acquired loans during their lifetime. Rocket claims UWM systematically violated the agreement through a coordinated campaign involving three separate programs.
According to the complaint, UWM launched the “Refi75” Program in September 2024, offering brokers a 75-basis-point discount to refinance past customers—including borrowers whose loans Mr. Cooper had just purchased. One week later, UWM rolled out KEEP, an AI-powered system that automatically identified and targeted Mr. Cooper borrowers with personalized refinancing offers.
The most aggressive initiative came in March 2025, after Rocket announced its acquisition of Mr. Cooper. UWM Chairman and CEO Mat Ishbia introduced “Refi Shield 100,” offering brokers a 100-basis-point interest rate reduction specifically for loans sold to Mr. Cooper. In a weekly video to brokers, Ishbia stated he would “lose money just for fun” to prevent the loans from going to Rocket and explicitly told brokers to target Mr. Cooper’s servicing portfolio.
“Any loan that we’ve ever done with Mr. Cooper where we’ve sold the servicing, you can go and take advantage of it and go refinance these clients,” Ishbia said, according to the complaint.
Rocket claims the campaign had a devastating financial impact.
The complaint alleges that prepayment rates for the targeted loans were approximately 2.5 times higher than comparable loan pools, resulting in lost servicing revenue of nearly $100 million. Since servicing fees depend on the outstanding principal balance, early refinancing directly reduced the value of the servicing rights purchased.
The lawsuit asserts that UWM’s actions constituted willful breach of contract and were undertaken with full knowledge of the consequences. Rocket is seeking compensatory damages of approximately $100 million, plus pre- and post-judgment interest, attorneys’ fees, and other relief the court deems appropriate.
UWM did not immediately respond to a request for comment and Rocket didn’t provide any comment beyond what’s in the official filed complaint.
