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Mendez v. Optimal Blue LLC et al.
Filed
October 2024
Jurisdiction
Middle District of Tennessee
Plaintiff Firm
Lockridge Grindal Nauen (lead counsel)
Next Milestone
Discovery and class certification proceedings ongoing
Price-fixing conspiracy among 29 mortgage lenders using Optimal Blue's pricing platform to coordinate and inflate mortgage interest rates, violating Sherman Antitrust Act Section 1
Potential $1B+ class action affecting millions of homebuyers who paid artificially inflated mortgage rates; could fundamentally reshape mortgage pricing transparency and platform liability
Class Action Filed
October 2024Mendez v. Optimal Blue LLC et al. filed in Middle District of Tennessee alleging 29 mortgage lenders conspired through Optimal Blue's pricing platform to fix and inflate mortgage interest rates in violation of Sherman Antitrust Act Section 1
Defendants Identified
October 2024Complaint names 29 defendants including Rocket Mortgage, UWM, Wells Fargo, Chase, Bank of America, loanDepot, Caliber Home Loans, Fairway Independent Mortgage, and 21 other major lenders using Optimal Blue platform
Discovery Initiated
November 2024Plaintiffs begin discovery process to obtain internal communications and pricing data from Optimal Blue platform and defendant lenders
Case Status
February 2026Discovery and class certification proceedings ongoing; potential $1B+ class action affecting millions of homebuyers who paid artificially inflated mortgage rates
Category
Mortgage LendingSettlement
6900000
Wells Fargo allegedly violated Truth in Lending Act by failing to properly disclose buydown agreements where sellers paid upfront fees to reduce buyers' interest rates, causing borrowers to pay higher rates than disclosed
Category
Mortgage LendingSettlement
1950000
Freedom Mortgage and Realty Connect violated RESPA Section 8 by exchanging illegal kickbacks: Freedom paid Realty Connect for referrals, and Realty Connect steered homebuyers to Freedom in exchange for payments disguised as 'marketing services'
Category
Mortgage LendingSettlement
2000000
Cypress Loan Servicing (formerly Rushmore, acquired by Select Portfolio Servicing, with ties to PHH Mortgage/Onity Group) violated Massachusetts consumer protection and debt collection laws by charging illegal foreclosure-related fees and failing to properly apply borrower payments
Real experiences from homeowners affected by mortgage lending violations.
I applied for a mortgage in 2020 for a home in a predominantly minority neighborhood. Despite having excellent credit and a stable income, I was repeatedly denied or offered rates significantly higher than friends with similar financial profiles in other areas. After seeing the CFPB enforcement actions, I realized I may have been a victim of redlining.
Loan Date: March 2020
When refinancing my home, my loan officer strongly pushed me toward a specific title company and appraiser. I later discovered through court documents that there was an illegal kickback arrangement between my lender and these service providers, which inflated my closing costs by thousands of dollars.
Loan Date: August 2021
I used an online mortgage rate comparison platform in 2022. I thought I was getting competitive rates, but after the Optimal Blue lawsuit came to light, I realized the platform may have been artificially inflating rates through coordination with lenders. My 'best rate' was likely not competitive at all.
Loan Date: November 2022
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