A new lawsuit claims major mortgage firms pushed through a VA loan using fraud and irregular paperwork. Find out the potential implications for mortgage professionals
A new lawsuit filed September 2 puts the spotlight on some of the mortgage industry’s biggest names, with claims of fraud and regulatory missteps in a VA-backed home loan.
Nikki M. Harper, a disabled Army veteran, is taking on Barrett Financial Group, LLC; United Wholesale Mortgage; Mr. Cooper Loans/Nationstar Mortgage; Lakeview Loan Servicing LLC; Mary Yelton Realty (including Max Boswell and Anne Marie Kyzer); Vandermorgan Realty (including Justin Bolin and Christina Schroder); Findley, Edenfield & Green, LLC (including Mark Green and Danielle Neath); All Star Home Inspections, LLC (including Chuck Tolbert and Dwayne [LNU]); Hardy Appraisals (including Chris Hardy); Kathryn “Katie” Nix French; Stephen L. Sikes; Tina Thornton; and Trevor Barrett, all over a home purchase at 115 Carolyn Street, Sardis, Georgia. In her complaint, Harper says she was steered into buying a house with undisclosed hazards—including a failed HVAC system and structural deficiencies—and presented with irregular documentation, including an amendment executed using her electronic signature without her knowledge or consent.
Harper’s story, laid out in her own words in the federal court filing, describes a process she claims was tainted from the start by a coordinated scheme involving lenders, real estate agents, appraisers, inspectors, and closing professionals. According to the complaint, these parties misrepresented material facts, concealed hazards, used irregular documentation—including a dual-contract structure—and suppressed key documents, causing her to close on what she describes as an unaffordable and unsafe property.
The numbers in Harper’s story are specific. She reports her monthly income was about $3,700 at the time of closing (currently about $3,800), with a mortgage payment of roughly $1,526, plus insurance, car payments, and other bills. She claims her fixed obligations left insufficient residual income to safely qualify under VA standards, but the loan was nevertheless closed. United Wholesale Mortgage underwrote and acquired the loan, while Mr. Cooper continued collection and foreclosure activity after notice of alleged fraud and uninhabitable conditions.
The complaint details alleged failures by industry professionals: All Star Home Inspections is accused of omitting mold and asbestos testing in a 1950s structure and failing to identify hazards; Hardy Appraisals is alleged to have overstated value and ignored visible defects; Mary Yelton Realty and Vandermorgan Realty are said to have discouraged deeper diligence and rushed the transaction; Findley, Edenfield & Green is accused of processing irregular paperwork, including dual contracts and a suppressed receipt.
Things allegedly went downhill after closing. By April 2024, Harper says the home’s HVAC system failed, with interior temperatures reaching approximately 86 degrees, making the property uninhabitable. She describes entering a cycle of displacement in 2024 and 2025—staying in Airbnbs and hotels, then returning due to cost and credit barriers. Utility bills reportedly ballooned to over $1,500 in January and February 2025. Harper claims that in June 2025, the compounding stress, toxic conditions, and grief led to an emergency room visit. She also reports the loss of her partner in May 2025 and her dog in January 2024, and states her two adult sons were displaced as a result of the housing crisis.
Harper’s claims include fraud, forgery, violations of the Real Estate Settlement Procedures Act (RESPA), Truth in Lending Act (TILA), breach of fiduciary duty, negligence, and related causes. She seeks rescission of the VA loan, compensatory and punitive damages, statutory remedies, and injunctive relief halting foreclosure and correcting the record.
The complaint alleges a “pattern of abuse” in which veterans using the VA home loan benefit are targeted with inflated approvals, suppressed debts, irregular documentation, and the sale of unsafe, aging housing stock. Harper states that her attempts to obtain legal representation were unsuccessful due to high fees or lack of expertise, leading her to proceed pro se.
Defendants have not yet responded to the allegations. The case is newly filed and no final decision has been rendered. All statements in the complaint are claims by the plaintiff and have not been proven in court. The outcome of this case could have implications for origination practices, documentation, and compliance in the mortgage industry, particularly regarding VA loans and professional standards. For now, the complaint stands as a detailed account of alleged industry practices and the risks faced by mortgage professionals when compliance and diligence are called into question.
