Veterans United Hit With Lawsuit Claiming Deceptive Branding, Steering

Veteran homebuyers are accusing Veterans United Home Loans, owned by Mortgage Research Center, of falsely presenting itself as part of the federal government and steering borrowers toward more costly loans, according to a class-action lawsuit filed this week in Michigan.

The complaint alleges that the private, for-profit corporation that’s unaffiliated with the military designed its website to mislead homebuyers into believing it is connected to the U.S. Department of Veterans Affairs (VA). It cites “multiple real estate and loan officers” who 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 complaint states. 

Chad Moller, corporate communications manager for Veterans United, sent a statement to HousingWire that disputes the allegations.

“For 24 years we have been committed to serving Veterans and military families with love, care and respect,” the statement read. “We’re aware of the lawsuit that was filed. We deny the accusations and look forward to disputing this through the legal process. Because this is pending litigation, we can’t comment further.”

The lawsuit was filed Wednesday in the U.S. District Court for the Western District of Missouri against Veterans United and Veterans Realty, owned by Realty Search Solutions LLC. Attorneys representing the plaintiffs said they have spoken with roughly half a dozen real estate agents and loan officers across the country with firsthand experience involving 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. “Second, Veterans United has sought to deceive our nation’s military servicemembers by masquerading as affiliated with the U.S. Veterans Administration.”

Hagens Berman has also represented clients in cases involving Zillow and Rocket Companies, following settlements tied to real estate brokerage commissions that totaled more than $1 billion.

According to the complaint, Veterans United distributes leads to “preferred” agents who, upon closing a home sale, pay the company roughly 35% of their commission. The lawsuit further alleges that agents who do not refer loans back to Veterans United stop receiving leads.

“The harm from this deception is compounded by the fact that Veterans United loans are more costly and have higher interest rates compared to what home buyers could obtain with other lenders. Veterans United also offers less financial aid packages compared to its competitors,” the lawsuit states. 

The plaintiffs — homeowners who obtained Veterans United loans between 2022 and 2025 — allege violations of the Real Estate Settlement Procedures Act (RESPA), the Missouri Merchandising Practices Act and common-law unjust enrichment. The complaint states that the total amount in controversy exceeds $5 million.

Editor’s note: This story was updated with a statement from Veterans United.