Tracking said delivered. UWM allegedly said never received. The interest kept running
A Michigan couple alleges United Wholesale Mortgage lost their $425,000 check - then kept charging interest.
The couple filed a federal lawsuit against UWM on October 12, 2026, in the Western District of Michigan. According to the filing, they sent a six-figure cashier's check to pay down their home loan. UWM allegedly never credited it - and for more than a month, the lawsuit says, the lender "neither confirmed nor denied having received the Payment" while interest kept running on the full balance.
Here is what the lawsuit says happened.
The couple purchased a home in Middleville, Michigan, in February 2025 and financed the purchase through UWM with a $567,000 loan. That August, they refinanced into a new $576,000 note - also with UWM - to lock in a lower interest rate. The original mortgage was discharged in September 2025, leaving the refinanced loan as the only mortgage on the property.
The plan, according to the filing, was to use the proceeds from selling their previous home to make a large paydown. That home sold in December 2025. On December 30, the couple obtained a $425,000 cashier's check from their credit union, made payable to UWM. The next day, they mailed it via USPS Express Mail to UWM's Payment Processing Center in Newark, New Jersey - the address specified on UWM's own periodic statements.
USPS tracking shows the envelope was delivered on January 3, 2026, at 12:31 p.m.
That is where the trouble starts.
The lawsuit alleges UWM never credited the $425,000 to the loan. When the couple called on January 16, they say UWM told them no payment had been received and that their January installment was overdue. They paid it on the spot, including a $180.71 late fee.
Four days later, they confirmed with their credit union that the cashier's check had not been cashed. They contacted UWM again the same day and were directed to send their inquiry to UWM's "Research Department." They sent a letter documenting everything - the check amount, the mailing, the tracking confirmation.
Under federal servicing rules, that kind of letter triggers specific duties for the lender. According to the filing, UWM was required to either fix the problem or investigate and respond to the couple in writing.
The lawsuit claims UWM did neither.
For more than a month after January 21, the filing says, the couple followed up electronically with UWM's support team. During that stretch, the lawsuit alleges, UWM "neither confirmed nor denied having received the Payment." Interest continued to accrue on the full loan balance the entire time.
The filing alleges UWM "lost, discarded, or destroyed" the check. Because the check was never cashed, the couple says they could not recover the $425,000 from their credit union until March 30, 2026 - 90 days after the check was issued. On that same day, they wired UWM enough to pay off the entire remaining balance and close the loan.
The alleged cost: more than $6,500 in interest that the couple claims would not have accrued had UWM credited the payment when it arrived on January 3, plus the $180.71 late fee.
The lawsuit presses claims under three federal and state statutes. The Truth in Lending Act requires a servicer to credit a payment to the borrower's account on the day it arrives. The Real Estate Settlement Procedures Act requires a servicer to either correct a reported error or investigate and provide a written response. Michigan's Mortgage Brokers, Lenders, and Servicers Licensing Act treats those same violations as independent state-law claims, carrying their own right to damages and attorney fees.
The filing also identifies UWM's Payment Processing Center as operated by a company called Regulus, described as UWM's authorized payment-processing agent. Regulus is not named as a defendant in the lawsuit.
The couple is seeking actual damages, additional penalties allowed under the statutes, attorney fees, and costs. They have demanded a jury trial.
For servicers and compliance teams, the case is a pointed reminder: when a payment arrives and is not credited, the clock on federal liability starts ticking - regardless of what happened on the receiving end.
None of the allegations in this lawsuit have been proven, and no court has made any findings on the claims.
