The Veterans United Lawsuit: What Every Veteran Should Know Before Picking a VA Lender

I get calls from veterans every week asking whether they should use Veterans United for their VA loan. The name sounds official. The ads are everywhere. That changed in February 2026, when a class-action lawsuit was filed accusing Veterans United of systematically misleading veterans and steering them into higher-cost loans. The company denies all allegations. But regardless of how this case plays out, it raises questions that every veteran shopping for a mortgage needs to think about.

Key Takeaways

• Working with an independent mortgage broker who shops wholesale lenders can often save you thousands over the life of a VA loan.
• Every veteran should shop at least three lenders and compare Loan Estimates before committing.
• Veterans United denies all allegations. The lawsuit alleges violations of RESPA (kickbacks and referral arrangements).
• No mortgage company is endorsed by or affiliated with the VA.

What Is Steering and Why Should You Care?

Steering happens when a lender directs you toward a specific loan product—not because it's the best fit for your situation, but because it generates more revenue for the company. You end up paying more than you should, sometimes significantly more.

Under RESPA and the Dodd-Frank Act, steering is illegal. Loan originators are required to present you with loan options that are in your best interest.

How to Protect Yourself When Choosing a VA Lender

Get a pre-approval from at least three lenders. Compare rate, fees, and total closing costs. The Loan Estimate is a standardized document designed for apples-to-apples comparison.

Compare the Loan Estimate, not just the rate. A low rate with high fees can cost more over time. Look at total closing costs, origination charges, and APR.

Consider working with an independent mortgage broker. A broker shops your loan across many lenders to find the best combination of rate and fees for your situation.

Verify that your lender is VA-approved. You can verify through the VA's Lender Search tool. Being VA-approved doesn't mean the VA endorses that lender.

If you're a veteran thinking about buying a home or refinancing in the Pacific Northwest, get informed, get multiple quotes, and work with someone whose only incentive is finding you the best deal.

By Dawn Robbins Group | NMLS# 432345

This content is for educational purposes only and does not constitute financial advice. Every buyer's situation is unique. Contact Dawn Robbins Group for personalized guidance.

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