BREAKING: Veterans United Home Loans Faces RESPA Lawsuit - Commission Litigation Expands to Mortgage Industry

February 19, 2026 - The legal assault on real estate industry practices has taken a dramatic new turn. Cohen Milstein Sellers & Toll, the powerhouse firm behind the groundbreaking Sitzer/Burnett verdict, has filed a class action lawsuit against Veterans United Home Loans, alleging violations of the Real Estate Settlement Procedures Act (RESPA).

A major mortgage lender that serves our veterans is now being sued for allegedly running a kickback scheme. Veterans United Home Loans supposedly steered military families to specific real estate agents and got paid for it—which is illegal under federal law. The same legal team that won $1.8 billion against the real estate industry is now going after the mortgage side of the house. If you got a Veterans United mortgage between 2020-2026 and they pushed you toward a particular agent, you might be owed money. This is about holding powerful financial institutions accountable when they rig the system against the people they're supposed to serve.

The Expansion Beyond Brokerages

This lawsuit represents the first major expansion of commission-related litigation beyond real estate brokerages and into the mortgage industry. The complaint alleges that Veterans United engaged in illegal kickback schemes by steering borrowers to affiliated real estate agents in exchange for referral fees.

What This Means for Consumers

The lawsuit alleges that Veterans United:

• Steered military veterans and their families to preferred real estate agents

• Received kickbacks disguised as marketing fees

• Inflated costs for homebuyers through hidden referral arrangements

• Violated RESPA's prohibition on referral fees

The Legal Strategy

Cohen Milstein's decision to target the mortgage industry demonstrates the firm's comprehensive approach to dismantling what they view as systemic anticompetitive practices across the entire real estate transaction ecosystem.

Key allegations include:

1. Illegal Referral Fees: Veterans United allegedly received payments from real estate agents in exchange for borrower referrals

2. Steering Practices: The lender allegedly pressured borrowers to use specific agents

3. Hidden Costs: Consumers allegedly paid inflated prices due to these arrangements

Impact on the Industry

This lawsuit could have far-reaching implications:

• Mortgage Lenders: Other lenders with agent referral programs may face similar scrutiny

• Real Estate Agents: Agents paying referral fees to lenders could face liability

• Consumers: Homebuyers may be entitled to compensation for overpaid fees

What Homeowners Should Know

If you obtained a mortgage through Veterans United Home Loans and were referred to a real estate agent, you may be eligible to join this class action lawsuit. Key eligibility factors include:

• Obtained a Veterans United mortgage between 2020-2026

• Were referred to or encouraged to use a specific real estate agent

• Purchased a home using that agent

The Broader Context

This lawsuit follows the massive settlements in the NAR commission cases:

• Sitzer/Burnett: $1.8 billion jury verdict

• NAR Settlement: $418 million

• Keller Williams: $20 million (homebuyer settlement)

• Moehrl: $42 million (six-brokerage settlement)

Next Steps

The case is in its early stages, but given Cohen Milstein's track record, the mortgage industry should prepare for intense scrutiny. Class certification hearings will determine the scope of potential damages.

For more information:

• View all real estate lawsuits

• Check your settlement eligibility

• Calculate your potential claim

This is a developing story. Check back for updates as the case progresses.