UWM Sues Nearby Rival Towne Mortgage for Poaching
Pontiac, MI – July 2, 2025 – United Wholesale Mortgage (UWM), the nation’s largest wholesale lender, has taken legal action against proximate competitor Towne Mortgage, filing a lawsuit in Michigan state court that accuses the smaller firm of orchestrating a calculated employee “raiding campaign.”
The Allegations
-
Nine former UWM account executives—who reportedly moved to Towne between August 2024 and January 2025—are accused of misappropriating trade secrets, including confidential broker‑partner details and compensation data .
-
UWM’s complaint asserts that these employees forwarded proprietary information from their UWM email addresses to personal accounts before resigning .
The Defendants & Regulatory Safeguards
-
Of the nine individuals named, eight are still employed at Towne.
-
UWM alleges each defendant violated non‑compete, non‑solicitation, and confidentiality agreements, which remain in force for between one and two years post-employment .
Towne Mortgage’s Response
-
Towne denies that the seized information qualifies as “proprietary or confidential,” adding that some emails were deleted before resignation.
-
The company also counters that one alleged instigator of the scheme left UWM a decade ago, casting doubt on any current claim of possessing sensitive, up-to-date information .
-
Further, Towne contends that UWM never provided supporting documentation when counsel met in November 2024, and raises defenses such as wage disputes and possible arbitration clauses .
Strategic Stakes
-
Towne Mortgage is based in Troy, Michigan—just 10 miles from UWM’s sprawling Pontiac headquarters .
-
While significantly smaller, Towne posted nearly $2 billion in loan originations and purchases in 2024 .
-
UWM, accustomed to large-scale litigation, notes this is its first trade‑secrets lawsuit amid a flurry of poaching actions post-refinance boom.
UWM’s Official Statement
A UWM spokesperson said:
“UWM has taken decisive legal action to hold Towne Mortgage and a select number of former UWM team members accountable and to protect the hard work and dedication of our team,”
What’s Next
-
The lawsuit—initiated in January 2025—is progressing in Michigan state court. A response has already been filed by Towne denying wrongdoing .
-
UWM seeks to enforce contractual restrictions, prevent use of the contested data, and potentially secure damages for breach of contract and tortious interference.
Why This Matters
This case underscores the fierce competition for experienced mortgage professionals in the industry. UWM’s suit could set a precedent for how far companies must go to protect proprietary relationships and data—especially when rivals are merely minutes away geographically.
