Law firm says vets have been harmed by “steering” practices leading homebuyers away from cheaper mortgages

Veteran homebuyers represented by attorneys at Hagens Berman filed a class-action lawsuit against Veterans United Home Loans, a private for-profit corporation unaffiliated with the military, accusing it of engaging in illegal predatory practices that harm vets seeking to buy a home.

The lawsuit was filed Feb. 18, 2026, in the U.S. District Court for the Western District of Missouri against Veterans United Home Loans, owned by Mortgage Research Center, LLC, and Veterans Realty, owned by Realty Search Solutions, LLC. It accuses the parties of having capitalized on and exploited this market by deceptively suggesting it is part of the VA or the federal government, and steering clients to more costly, higher interest rate loans. Steering as a practice in real estate is an illegal practice.

If you bought a home and used Veterans United Home Loans to finance at any time since Jan. 1, 2020, find out more about your rights.

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

The new lawsuit comes as part of consumer-protection law firm Hagens Berman’s efforts to create a more transparent real estate system, following on the heels of similar litigation aimed at Zillow Inc., at Rocket, and the firm’s blockbuster settlements regarding real estate brokerage fees totaling more than $1 billion.

Claims of Deception in Name & Practice

The lawsuit states that while the U.S. Veterans Administration runs an essential program for veterans and active military servicemembers looking to buy a house, Veterans United Home Loans and other defendants have no affiliation with the government and is founded and run by three individuals with no military service records.

According to the lawsuit, its website is intentionally designed to mislead home buyers into believing that it is part of the VA, based in part on its promotion that it is “The Nation’s #1 VA Lender,” and Veterans United’s trick has worked. The lawsuit details accounts from multiple real estate and loan officers who routinely lose business to Veterans United because veteran and military customers believe they need to use Veterans United because it is affiliated with the VA. Cited agents and loan officers in the complaint say, “Veterans United’s steering practices are a disservice to its clients in the military.”

“These mortgage companies should be ashamed of their underhanded business tactics and are wholly unaffiliated with the military,” Berman said. “No owner, co-owner or founder has served in the military.”

“Blatant Steering”

The lawsuit also brings claims of violation of the Real Estate Settlement Procedures Act (RESPA) for allegedly fraudulent conduct resulting in Veterans United customers being steered away from loans with better interest rates and cheaper overall outcomes for homebuyers.

Veterans United has a network of affiliated agents throughout the country who do not work for Veterans United, but who receive referrals from Veterans United, the lawsuit states. If the lead closes on a house, the agents pay Veterans United a substantial proportion (around 35%) of their commission, according to attorneys. These agents are also required to steer their clients into using Veterans United for their home loans even if the terms of the loans are less favorable than other loans available to consumers. If the agents do not do so, they stop receiving leads, the lawsuit alleges.

“Defendants’ conduct as alleged herein violates federal statutes that seek to promote transparency and accountability in the real estate industry, in two respects,” the lawsuit states. “First, Veterans United’s practice of providing leads to agents in exchange for pushing clients to Veterans United Home Loans is blatant steering. Second, by requiring preferred agents to pay the undisclosed 35% fee, Defendants are further violating RESPA because Defendants are receiving a payment that is not in exchange for completing the property transaction. RESPA prohibits receiving payments that are not ‘in connection with a transaction involving a federally related mortgage loan.’”

Veterans United offers less financial aid packages compared to its competitors and its loans have higher interest rates, threatening to trap veteran homebuyers into subpar financial agreements that could have been avoided at a competing lender.

Find out more about the lawsuit against Veterans United alleging illegal steering practices.

About Hagens Berman

Hagens Berman is a global plaintiffs’ rights complex litigation law firm with a tenacious drive for achieving real results for those harmed by corporate negligence and fraud. Since its founding in 1993, the firm’s determination has earned it numerous national accolades, awards and titles of “Most Feared Plaintiff’s Firm,” MVPs and Trailblazers of class-action law. More about the law firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

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“These mortgage companies should be ashamed of their underhanded business tactics and are wholly unaffiliated with the military,” Berman said.