A newly filed federal class action lawsuit in Missouri is taking aim at Columbia, Missouri based Veterans United Home Loans, alleging illegal steering practices, undisclosed kickbacks, and violations of federal consumer protection laws. Because the company is headquartered in Missouri and operates nationwide, this case could have meaningful implications for home buyers, agents, and lenders right here in the St. Louis area.
The lawsuit, filed in the U.S. District Court for the Western District of Missouri, claims Veterans United and related entities engaged in practices that allegedly steered VA borrowers to affiliated real estate agents and back to Veterans United for financing. According to the complaint, certain agents who received buyer referrals were required to pay approximately 35 percent of their commission back to a Veterans United affiliated real estate entity. The suit alleges this arrangement violates the Real Estate Settlement Procedures Act, or RESPA, as well as Missouri consumer protection laws.
For St. Louis area consumers, the Missouri connection makes this case especially relevant. While the plaintiffs are from outside the region, the defendant is a Missouri company and the claims are being litigated in Missouri federal court. If the allegations are proven, the case could impact how referral networks, affiliated business arrangements, and VA loan marketing are handled across the state.
It is also worth noting that the attorneys representing the plaintiffs are the same firms involved in the well known Sitzer and Moehrl commission lawsuits, which also originated in Missouri and resulted in major changes to real estate commission practices nationwide. That history alone makes this new case one to watch closely.
The plaintiffs are seeking class action status on behalf of borrowers who used Veterans United to finance a home purchase since January 1, 2020, along with treble damages under RESPA. As with any lawsuit, these are allegations, and the defendants will have the opportunity to respond and defend themselves in court.
If you would like to read the complete lawsuit filing, you can access it here:
View the full class action complaint
As this case progresses, it could shape future conversations about referral practices, VA loan marketing, and agent compensation in Missouri, including here in the St. Louis metro area. I will continue to follow developments and report on any rulings or settlements that may affect local buyers, sellers, and real estate professionals.
