Veterans United Home Loans Lawsuit, Veterans Say They Were Misled, Overcharged, and Kept in the Dark

A federal class action filed February 18, 2026 in the Western District of Missouri accuses Veterans United Home Loans — the nation’s largest VA mortgage lender — of running an illegal kickback scheme that trapped military homebuyers in a closed loop of referrals and overpriced lending. Three military veterans filed the lawsuit on behalf of a proposed nationwide class of hundreds of thousands of borrowers. No settlement has been reached as of March 12, 2026.

Quick Facts

What Actually Happened?

Veterans United Home Loans is the nation’s largest VA mortgage lender, having financed over $19 billion in VA loan volume in 2024 alone. It was founded by two brothers, Brant and Brock Bukowsky, and is run by CEO Nathan Long. None of them are veterans. The company has no affiliation with the U.S. Department of Veterans Affairs whatsoever. Despite that, the lawsuit alleges, millions of military homebuyers believed otherwise — and that belief cost them money.

At the center of the allegations is a referral network of more than 5,000 real estate agents across the country. According to the lawsuit, Veterans United feeds these agents pre-qualified buyer leads. When a deal closes, the agents pay roughly 35 percent of their commission back to Veterans United. In exchange, the agents are required to steer their clients exclusively to Veterans United for their mortgage — no shopping around, no competitive bids.

The three plaintiffs — Christian Peyton of Tennessee, Salem Zahn of Texas, and Ernest Easter of Pennsylvania — say they were never told about these arrangements. None were informed that their agent was required to push them toward Veterans United’s lending products or that a significant slice of the agent’s commission was going back to the company. Each plaintiff alleges they ended up overpaying for their loan as a result.

What Does the Lawsuit Allege?

The complaint makes two separate sets of allegations — one about how Veterans United markets itself, and one about how it operates its referral network.

On the marketing side, the lawsuit targets Veterans United’s branding, which it calls deliberately misleading. The company’s website features patriotic imagery and the tagline “The Nation’s #1 VA Lender” in large, prominent text, while a disclaimer noting it is “not a government agency” appears in tiny, nearly invisible lettering. The complaint alleges this design deceived military homebuyers into believing they were required to use Veterans United because it was part of the federal government.

On the lending side, the complaint alleges Veterans United’s loans carry higher interest rates, steeper closing costs, and fewer financial assistance options than competing lenders. One loan officer cited in the complaint said rates up to half a percentage point lower than Veterans United’s were available from competing lenders. The complaint alleges veterans were steered into these costlier products without ever being told better options existed.

Veterans United is not the only mortgage lender facing these allegations in 2026. The Zillow RESPA lawsuit makes nearly identical claims — alleging Zillow Home Loans used a 40% agent referral fee network to steer buyers away from better mortgage options without disclosure.

Here is what each of the three named plaintiffs claims happened to them personally:

Peyton, who served in the U.S. Army Reserve and National Guard and now receives 100% permanent and total disability benefits from the VA, purchased a home in Gallatin, Tennessee in May 2022. He alleges his Veterans United-referred agent never disclosed the 35% commission kickback arrangement or that the agent was required to steer clients to the lender.

Zahn, a former Marine Corps Logistics Man who purchased a home in Bedford, Texas in August 2025, says she chose Veterans United because she assumed, based on its name, that it would prioritize her interests. She also alleges the company’s appraiser failed to adequately inspect her property, which has since had significant electrical problems.

Easter, a former Army Chief Signal Specialist, purchased a home in Lansdale, Pennsylvania in September 2022 and similarly says he used Veterans United because he assumed it was part of the VA.

What Laws Were Allegedly Violated?

• Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. § 2607 — Federal law that prohibits kickbacks, referral fees, and unearned compensation in any transaction involving a federally related mortgage loan. The complaint alleges Veterans United violated RESPA in two ways: first, by accepting 35% commission payments from agents in exchange for leads, and second, by requiring those agents to steer clients to Veterans United loans regardless of whether better options were available.
  
• Missouri Merchandising Practices Act (MMPA), Mo. Rev. Stat. § 407.010 — Missouri state consumer protection law prohibiting deceptive, unfair, or misleading business practices. The complaint alleges Veterans United’s website and branding — designed to imply a government affiliation that does not exist — violates this law.
  
• Unjust Enrichment (Common Law) — A legal claim that a company profited from something it had no right to keep. The complaint alleges Veterans United was unjustly enriched by the 35% commission payments it collected from agents who were, in turn, passing that cost on to military homebuyers through higher loan pricing.
  
• RESPA Treble Damages Provision — Under RESPA, a court can award up to three times the actual damages suffered when steering violations are proven. Plaintiffs are seeking treble damages under RESPA — three times the amount of kickbacks paid — along with injunctive relief, disgorgement of profits, and attorneys’ fees.

Who Does This Lawsuit Affect?

• You may be affected if you used Veterans United Home Loans to finance a home purchase at any point since January 1, 2020.
• You may be affected if a Veterans United-referred real estate agent represented you in a home purchase and never disclosed they were required to refer you back to Veterans United for your mortgage.
• You may be affected if you used Veterans United Home Loans and later discovered comparable loans were available from other lenders at lower interest rates or with fewer fees.
• You may be affected if you are a military veteran, active duty service member, or surviving spouse who chose Veterans United because you believed — based on its name, logo, or website — that it was affiliated with the U.S. Department of Veterans Affairs.
• You may be affected if you purchased a home between 2022 and 2025 and your Veterans United loan carried rates or costs you were not told could be lower elsewhere.

No action is required right now. Save all loan documents, closing disclosures, agent communications, and any marketing materials from Veterans United — these may matter if a settlement is reached. Affected homebuyers can contact Hagens Berman directly at 1-888-381-2889 or via email at [email protected] to learn more about the case.

What Is Veterans United Saying?

A Veterans United spokesperson issued the following statement: “For 24 years, we have been committed to serving veterans and military families with love, care and respect. We’re aware of the lawsuit that was filed. We deny the accusations and look forward to disputing this through the legal process. Because this is pending litigation, we can’t comment further.”

Veterans United has not filed a formal answer in court as of March 12, 2026. The company’s legal position — based on its public statement — is a full denial of all allegations. AllAboutLawyer.com will update this section when Veterans United files its formal response with the court.

What Happens Next?

• Veterans United must file a formal answer. The company has denied the allegations publicly, but must now respond formally in court — either with an answer to the complaint or a motion to dismiss. That filing will reveal the full legal arguments it plans to use in its defense.
• The court will set a discovery schedule. Both sides will exchange documents, depose witnesses, and review loan records. Given the scale of the proposed class — potentially hundreds of thousands of borrowers — discovery in this case could take one to two years.
• Class certification is the critical next step. Before this case can proceed on behalf of all affected borrowers, a judge must formally certify it as a class action. The proposed class covers all borrowers who financed a home purchase through Veterans United since January 1, 2020. If class certification is denied, the three named plaintiffs may still pursue individual claims.
• This case follows a familiar playbook. Hagens Berman is also behind the Taylor case — a lawsuit filed against Zillow alleging that the search giant’s home loans division participates in illegal steering and deceptive practices. The firm has said it is actively pursuing similar steering cases across the mortgage and real estate industry.
• A jury trial has been demanded. Unlike many civil cases that are resolved by a judge, the plaintiffs here have specifically requested a jury decide the outcome — which typically results in a longer, more public process.

This page will be updated as the case develops.

This case follows a nearly identical legal playbook to the Rocket Mortgage lawsuit — also filed by Hagens Berman in early 2026, also alleging a 35% agent kickback scheme, and also targeting illegal mortgage steering under RESPA.

Important Case Dates

Frequently Asked Questions

Is the Veterans United Home Loans lawsuit real?

Yes. Peyton et al. v. Veterans United Home Loans is an active federal class action filed February 18, 2026 in the U.S. District Court for the Western District of Missouri. The case is publicly available through PACER. Veterans United has denied all allegations. No settlement has been reached and no claim form is currently available.

Can I file a Veterans United claim right now?

 No claim form exists yet. The case is in its earliest litigation stage. If the court later certifies a class and a settlement is reached, qualifying borrowers will receive official notice with instructions. You do not need to do anything right now except save your loan documents.

Is Veterans United part of the VA or the U.S. government?

 No. Veterans United Home Loans has no affiliation with the U.S. Department of Veterans Affairs whatsoever. It is a private, for-profit corporation founded and run by individuals with no military service. The lawsuit alleges its name, logo, and website were designed to make military buyers believe otherwise.

Do I need a lawyer to join this Veterans United lawsuit?

 No. If the case reaches a court-approved class settlement, qualifying borrowers will likely be notified automatically and can participate without hiring an attorney. However, if you believe you were specifically harmed and want to understand your individual options, you may consult a consumer protection or real estate attorney.

What is RESPA and why does it matter for this lawsuit?

 RESPA stands for the Real Estate Settlement Procedures Act — a federal law specifically designed to protect homebuyers from hidden kickbacks and steering in mortgage transactions. It requires full disclosure of all referral arrangements and prohibits lenders and agents from receiving undisclosed payments that are not directly tied to services performed. The Veterans United lawsuit claims the company’s agent referral network violated RESPA’s core prohibitions.

What is mortgage steering and is it actually illegal?

 Steering is when a lender, agent, or broker deliberately directs a borrower to a specific loan product — not because it is the best fit for the borrower, but because it benefits the person doing the directing. Under RESPA and federal mortgage regulations, steering that results in a borrower receiving a higher-cost loan when they qualified for something better is illegal. The lawsuit alleges Veterans United’s entire agent referral network was built around this practice.

What happens if Veterans United loses this case? 

If the plaintiffs prevail on their RESPA claims, the court could award treble damages — meaning three times the actual overcharges paid by every class member. With a proposed class of hundreds of thousands of borrowers going back to 2020, the total exposure could be significant. The court could also order Veterans United to change its marketing, its referral practices, or both.

Will I get notified if there is a Veterans United settlement?

 Yes, if you qualify as a class member and a court-approved settlement is reached. Make sure your current address and contact information are updated with your mortgage servicer. You can also register your interest directly with Hagens Berman at hbsslaw.com or by calling 1-888-381-2889.

Sources & References

• Peyton et al. v. Veterans United Home Loans — Law360 Case Docket (Credible legal industry source)
• NAR Magazine: Veteran Home Buyers Accuse Mortgage Lender of Steering, February 20, 2026 (Credible professional association source)
• Consumer Financial Protection Bureau — RESPA Overview (Official government source)

Last Updated: March 12, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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