Breaking News: Veterans United RESPA Lawsuit – What Arizona Military Families Need to Know

If you or someone you know used Veterans United Home Loans to buy a home in Arizona in the past few years, you need to read this. A major class action lawsuit dropped this week that could impact hundreds of thousands of veterans and military families nationwide, and Arizona is right in the middle of it.

On February 18, 2026, the law firm Cohen Milstein filed a nationwide class action lawsuit against Veterans United Home Loans in the U.S. District Court for the Western District of Missouri. The allegations? An illegal kickback scheme that allegedly steered veterans to specific real estate agents in exchange for referral fees, a clear violation of the Real Estate Settlement Procedures Act (RESPA).

This isn't just another lawsuit. It's the first major expansion of the commission litigation wave (think Sitzer/Burnett) into the mortgage side of the real estate industry. And if you're a veteran or active-duty service member who bought a home using a VA loan through Veterans United between 2020 and 2026, you might be part of this class.

Let's break down what's happening, why it matters, and what it means for Arizona military families.

What Exactly Are They Accused Of?

The lawsuit centers on two main allegations that, if proven true, would represent a serious breach of trust with the very community Veterans United claims to serve.

Allegation #1: Deceptive Marketing Practices

Veterans United allegedly marketed itself as if it were affiliated with or endorsed by the U.S. Veterans Administration. The company branded itself as "The Nation's #1 VA Lender," which could easily lead veterans to believe they were required to use this specific lender or that it was somehow officially connected to the VA.

Here's the problem: Veterans United is a private mortgage company. It's not part of the VA, not endorsed by the VA, and veterans are absolutely not required to use it. But when you're navigating the already-stressful process of buying a home, especially if it's your first time using your VA loan benefit, that kind of marketing can be incredibly misleading.

Allegation #2: The Kickback Scheme

This is where things get really interesting, and potentially expensive for Veterans United.

According to the lawsuit, Veterans United Realty agents receive homebuyer leads in exchange for steering those clients to Veterans United Home Loans. If an agent doesn't send their clients to the lender, they lose access to those valuable leads.

But wait, there's more. The complaint alleges that agents who close deals with referred leads must pay approximately 35% of their commission back to Veterans United. That's not a small cut. On a $400,000 home sale with a 2.5% commission, we're talking about $3,500 going back to Veterans United.

RESPA specifically prohibits these kinds of kickback arrangements because they create conflicts of interest. The agent's financial incentive becomes keeping Veterans United happy, not necessarily finding the best deal for their client.

Why This Is a Really Big Deal

If you've been following real estate news, you probably heard about the Sitzer/Burnett case and the wave of commission lawsuits that followed. Those cases challenged how buyer agent commissions worked and led to significant industry changes.

This Veterans United lawsuit is taking that same energy and applying it to the mortgage side of the transaction. It's asking the question: Are hidden referral fees and kickback arrangements inflating costs for homebuyers?

The answer, according to the lawsuit, is yes.

When agents are financially incentivized to steer clients to a specific lender, consumers lose. They might not get:

• The best interest rate available

• The most competitive loan terms

• Unbiased advice about their financing options

• True transparency about where their money is going

For veterans and military families: many of whom are first-time homebuyers: this alleged steering could mean thousands of dollars in additional costs over the life of their mortgage.

Who's Covered by This Lawsuit?

The class action includes anyone who used Veterans United Home Loans to finance a home purchase since January 1, 2020. The complaint estimates this could include hundreds of thousands of people nationwide.

If you're an Arizona military family who:

• Used Veterans United Home Loans between 2020 and 2026

• Were referred to or used a Veterans United Realty agent

• Completed a home purchase

You may be eligible to participate in this class action.

Even if you had a positive experience with Veterans United, you could still be part of the class. The lawsuit isn't claiming every individual transaction was bad: it's challenging the system that allegedly created conflicts of interest and violated federal law.

What Veterans United Is Saying

To be fair, Veterans United is denying these accusations. In a statement, the company said: "For 24 years we have been committed to serving Veterans and military families with love, care and respect" and that it looks "forward to disputing this through the legal process."

The legal process will ultimately determine the truth of these allegations. But the lawsuit itself raises important questions about transparency, conflicts of interest, and whether veterans are truly being served or being sold.

The Clearly Sold Difference: Transparency Over Kickbacks

Here's where I need to be clear about how Clearly Sold operates, especially through our Rewarding Heroes program.

We work with veterans, active-duty military, first responders, healthcare workers, and educators every single day. These are the people who make our Arizona communities safer, healthier, and stronger. They deserve the absolute best when it comes to buying or selling a home.

But here's what we don't do:

We don't take kickbacks. We don't receive referral fees from lenders. We don't steer our clients to specific mortgage companies in exchange for financial compensation. Our job is to represent you: not a lender, not a mortgage company, not anyone else.

We don't hide fees. Our $8,888 flat fee model is straightforward. You pay $8,888 to list your home with full-service representation. If we bring an unrepresented buyer through our own marketing and technology, there's an additional $8,888 fee for that buyer-side work. No hidden costs. No surprises. No games.

We believe in your right to choose. Want to shop around for the best mortgage rate? Do it. Want to use a specific lender you trust? Go for it. Want our recommendations for great local lenders who treat veterans right? We've got those too: but the choice is always yours.

Through our Rewarding Heroes program, we provide special benefits and incentives for Arizona's heroes, but those benefits come from us: not from steering you to some mortgage company paying us behind the scenes.

That's the difference between a kickback culture and a transparency culture.

If you want to learn more about how we approach real estate differently, check out our resources page for guides, e-books, and videos about navigating the Arizona real estate market with confidence and clarity.

What Happens Next?

The lawsuit is seeking treble damages (three times the amount of kickbacks allegedly paid), injunctive relief, disgorgement of profits, and attorneys' fees. If successful, this could result in significant financial penalties for Veterans United and potentially change how mortgage companies and real estate brokerages work together.

For now, if you used Veterans United Home Loans since 2020, you don't need to do anything immediately. Class action lawsuits take time to work through the courts. You'll likely receive notification if you're determined to be part of the class.

But what you can do right now is:

1. Know your rights. You're never required to use a specific lender, even if someone makes it sound like you should.

2. Ask questions. If an agent is pushing you toward a specific lender, ask why. Ask if they receive any compensation for that referral.

3. Shop around. Get quotes from multiple lenders. Compare not just rates, but fees, customer service, and terms.

4. Demand transparency. Whether you're buying or selling, work with professionals who are upfront about how they're compensated and who they represent.

The Arizona military community deserves better than alleged kickback schemes and conflicts of interest. You've earned your VA loan benefit through service to this country. You deserve professionals who honor that service by putting your interests first: always.

Final Thoughts

This Veterans United lawsuit is a wake-up call for the entire real estate and mortgage industry. The days of hidden fees, undisclosed referral arrangements, and steering practices should be over. Veterans and military families deserve complete transparency about where their money is going and who's benefiting from their transactions.

At Clearly Sold, we've built our entire business model around that principle. No kickbacks. No steering. No hidden agendas. Just honest, flat-fee real estate service for Arizona families: especially the heroes who serve our communities every day.

The legal process will determine whether Veterans United violated RESPA and whether class members are entitled to compensation. But regardless of how this specific case turns out, the broader message is clear: Transparency isn't optional anymore. It's what consumers expect and what they deserve.

If you're a veteran or military family member thinking about buying or selling a home in Arizona, you have options. You have rights. And you have professionals like our team who believe your service deserves our absolute best: with zero conflicts of interest and total transparency.

Frequently Asked Questions

Am I part of this class action lawsuit?

If you used Veterans United Home Loans to finance a home purchase anytime since January 1, 2020, you may be part of the class. You'll likely receive official notification if you're included, but you don't need to take any immediate action.

Do I need to hire a lawyer?

No. Class action lawsuits allow large groups of people with similar claims to be represented together. The law firm Cohen Milstein is representing the class. If you're part of the class, you'll have options to participate, opt out, or do nothing when official notifications are sent.

Will this affect my current VA loan?

No. This lawsuit doesn't change the terms of your existing mortgage or your VA loan benefits. It's focused on alleged violations of RESPA through kickback arrangements and deceptive marketing.

Should I stop using VA loans?

Absolutely not. VA loans are an incredible benefit that you've earned through your military service. This lawsuit is about one specific lender's alleged practices: not about VA loans in general. There are many excellent lenders who handle VA loans ethically and transparently.

How can I avoid these kinds of issues when buying a home?

Always ask your real estate agent or loan officer if they receive any compensation for referring you to specific service providers. Get quotes from multiple lenders. Work with professionals who are transparent about their fees and how they're compensated. And don't be afraid to walk away if something doesn't feel right.

Does Clearly Sold receive referral fees from lenders?

No. We don't receive kickbacks, referral fees, or any form of compensation from mortgage lenders. Our income comes exclusively from our flat fee for services we provide directly to you. We can recommend great local lenders we trust, but we receive nothing if you choose to use them.

What's the timeline for this lawsuit?

Class action lawsuits typically take months or years to resolve. There will be a discovery process, potential settlement negotiations, and possibly a trial. Class members will be kept informed throughout the process and will have opportunities to participate or object to any proposed settlement.

Ready to work with a real estate team that puts transparency first? Whether you're buying, selling, or both, Clearly Sold is here to serve Arizona's military families with honesty, expertise, and zero conflicts of interest.

Contact Andrew Texidor
Realtor and Founder, Clearly Sold
Brokered by HomeSmart
📞 Phone: 623-400-5957
✉️ Email: [email protected]
🌐 Visit: ClearlySold.com

Schedule a call today and let's talk about how flat-fee, transparent real estate service can save you thousands while giving you complete peace of mind.

Andrew Texidor, founder of Rewarding Heroes and Clearly Sold brokered by HomeSmart, is a certified AI agent.