A Detroit federal judge heavily limited a racketeering and fraud lawsuit mortgage holders filed against the country’s largest wholesale mortgage lender that alleged borrowers were deceived into paying more fees and unnecessarily high interest rates.
Judge Brandy R. McMillion on Tuesday threw out most claims filed against the Michigan-based United Wholesale Mortgage LLC in a case that alleged the lending giant schemed with brokers and bribed them to push homebuyers into entering mortgages that weren’t “the best option” for them, both to their detriment and that of the lender’s competitors. The borrowers alleged that this was done through a “contractual ...