Homebuyers Sue Top Lenders Over “Cartel” Allegations – Should Mortgage Executives Take Notice?

Borrowers have accused 26 major mortgage lenders, alongside mortgage tech provider Optimal Blue, of operating a price‑fixing “cartel.” Filed October 3, 2025, in the U.S. District Court for the Middle District of Tennessee, the class action allegations include that the lenders conspired using Optimal Blue’s software to manipulate pricing across the industry.

The class is not yet certified, but plaintiffs suggest it could encompass millions of consumers. All mortgage providers, boutique to institutional, should monitor this case closely.

What are the Primary Allegations?

According to the complaint, Optimal Blue’s tools enabled lenders to share critical, otherwise proprietary, pricing data.

The plaintiffs claim for example that:

·         The tools exposed real-time, non-public pricing inputs, including LLPAs, concessions, servicing release premiums, loan officer compensation, and borrower credit characteristics.

·         With this transparency, lenders “abandoned competition” and coordinated to extract higher profits from homebuyers.

·         Participating lenders consistently issued loans with higher rate spreads than lenders not using Optimal Blue.

These are just allegations but they stretch beyond regional markets, suggesting nationwide impact.

What Is the Demand?

On behalf of themselves and potential class members, the plaintiffs seek:

·         Permanent injunctive relief to prevent future coordinated conduct

·         Treble damages under the Sherman Act

·         Whatever additional relief the court deems appropriate

Why Does This Matters to Mortgage Leaders?

Even if the case doesn’t survive certification, the exposure could be real:

·         Reputation Risk: Allegations of collusion strike at the heart of public trust in the mortgage sector.

·         Legal Precedent: A successful antitrust claim could redefine how pricing technology and data-sharing tools are regulated.

·         Compliance and Contracts: Mortgagors must reassess vendor agreements, data access, pricing systems, and antitrust risk controls.

·         Defensive Strategy: Lenders should evaluate whether their tools or partnerships could be targeted.

What Should a Lender Do Today?

·         Review vendor and software contracts for disclosure, pricing or benchmarking features that could be construed as facilitating coordination in a manner that violates antitrust law.

·         Audit pricing systems for shared data points raising antitrust flags.

·         Consult compliance and antitrust counsel to stress-test exposure and prepare a hardened posture.

Want More Information?

Could this lawsuit be a turning point in how data and pricing tools are viewed under U.S. antitrust law?  Whether you need a risk-assessment for your institution or just strategic guidance, we can assist.

Contact: troy@garrishorn.com