This article explains UWM’s filing to dismiss the antitrust complaint made by American Mortgage Licensing Corporation (AMLC) to the state of New Jersey. The litigation was originally filed in June 2020 and included allegations that UWM coerced its origination partners into restrictive arrangements.

UWM, a wholesale lender, argued that AMLC’s complaint should be dismissed because it is legally deficient and presents a number of factual inaccuracies. UWM argued that the complaint does not provide sufficient information about the conduct detailed or the effects it has had for the New Jersey origination market as a whole. UWM also argued that AMLC’s complaint fails to articulate an essential element of an antitrust violation – anti-competitive harm to competition.

AMLC’s complaint alleged that UWM attempted to block outside companies from competing for the origination business of others and that UWM’s conduct has forced brokers, smaller lenders and other mortgage service providers to accept less desirable terms. UWM has denied that any such practices exist and argued that their contracts are completely voluntary. The company highlighted the fact that they do not require origination partners to enter into exclusivity agreements, and they also allow their partners to use other lenders and aggregators.

UWM’s filing requested that the court dismiss the case and order AMLC to pay the legal fees incurred by UWM in defending the lawsuit. UWM stated that AMLC’s complaint has no merit, and that their filing was made to ensure legal protection for their partners. Ultimately the court will decide whether the complaint should be dismissed or if the case should proceed to a full trial.

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