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Veterans United sued over alleged deceptive branding, loan steering

Plus: Kentucky bill would freeze property taxes for senior homeowners

February 20, 2026

Good morning and Happy Friday! This is Mortgage Nuggets, your mortgage news tour guide. Today’s newsletter is 654 words, a 2.5-minute read. Let’s dive in…

Disclaimer: Average mortgage rates as of February 19, 2026. © MND Daily Rate Index.

1. Veterans United sued over alleged deceptive branding, loan steering

Veterans United Home Loans is facing a class-action lawsuit accusing the lender of misleading borrowers into believing it's affiliated with the U.S. Department of Veterans Affairs and steering them to costlier loans.

  • The complaint, filed Wednesday in Missouri federal court, alleges the private, for-profit company designed its website to falsely suggest government ties.

  • The lawsuit cites "multiple real estate and loan officers" who say they routinely lose business because borrowers believe they must use Veterans United "since it's part of the VA."

The company was founded and is run by three individuals with no military service records, according to the complaint. Plaintiffs also allege Veterans United distributes leads to "preferred" agents who pay roughly 35% of their commission upon closing.

2. Kentucky bill would freeze property taxes for senior homeowners

A proposed constitutional amendment moving through the Kentucky General Assembly would freeze property tax increases for homeowners 65 and older.

If Senate Bill 51 ultimately passes the legislature and is approved by voters, seniors would no longer pay higher property taxes when their property assessments increase.

They would still owe property taxes, even if tax rates rise, but the taxable value of their home would be locked in at the assessed value from the year they turn 65 or the year they purchase the home, whichever comes later.

"For instance, if your home was $200,000 when you turn 65, and it goes up to $300,000, you will still pay the tax on the $200,000 in whatever rate it is," Sen. Mike Nemes, R-Shepherdsville, said as he explained the bill to fellow lawmakers.

Top LOs Are Moving to Canopy

In today’s market, successful Loan Officers and Branch Managers demand more: better pricing, cutting-edge tech, true transparency, supportive leadership—and a bigger paycheck.

Hear directly from top producers who made the switch to Canopy Mortgage—transforming their business, boosting income, and gaining control of their work-life balance.

3. More Nuggets

📉 Pending home sales unexpectedly fall in January. (NAR)

🏦 Huntington Bank expands its mortgage footprint. (HousingWire)

🚨 CoStar lays off staff amid drastic Homes.com cost-cutting campaign. (REN)

🏠 Rent affordability hits four-year high, with further relief ahead. (Zillow)

4. Equifax settles fair credit reporting act suit

Equifax has reached a settlement with plaintiff Junnan Guo in a Fair Credit Reporting Act lawsuit filed in May 2025. The parties notified a California federal court of the agreement last week.

Case background: Guo claimed she was a victim of identity theft, but financial institutions and credit bureaus continued reporting and trying to collect fraudulent debts even after she provided proof of fraud. She alleged this violated federal and California consumer protection laws by failing to properly investigate and correct her credit reports, damaging her credit score and increasing her borrowing costs.

Settlement terms: The parties expect to file a joint dismissal with prejudice within two months, meaning Guo cannot refile against Equifax. Settlement details were not disclosed.

5. UMortgage launches flat-fee model

UMortgage is rolling out a flat-fee broker model that waives certain charges for high-producing originators, part of a push to more than quadruple its sales force to 1,000 loan officers by December.

Under the structure, LOs earn 275 basis points per loan but pay a $995 flat fee, a $300 quality control fee, and 10% in administrative taxes per transaction. Once an originator funds 50 loans within an anniversary year, the $995 fee is eliminated. Corporate margin is capped at $49,750 annually per LO — after that, 100% of revenue stays with the originator

“That’s not unique to us — there are other flat-fee broker models out there,” UMortgage president and CEO Anthony Casa said in an interview with HousingWire. “Where we are focused on creating our own niche in the market is by putting an annual corporate margin cap in place at $49,750 — 50 units multiplied by the $995 fee — after which 100% of the revenue stays with the loan officer.”

☀️ You’re all caught up. See you on Monday!

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