AmeriTrust Mortgage After the Union Home Sale (July 21, 2026): $14,076,000 in Alleged Baltimore DSCR Losses

What happened, in dated order

The suits are about loans made in 2024 or earlier. The Union Home sale came first, in July 2026; AmeriTrust sued about seven weeks later (our arithmetic: July 21 to September 9, 2026 is 50 days).

What the Union Home sale says, and what it leaves out

Union Home's release, dated July 21, 2026, calls it a deal for AmeriTrust's “existing retail branches, wholesale broker relationships and corresponding sales channels” and describes AmeriTrust as a specialist in non-QM lending, meaning loans for borrowers such as the self-employed and real estate investors. Union Home says it is the “No. 7 wholesale lender in the country” (its own claim) and that the deal puts it on a “total annual run rate of $20 billion.” It also names two 2025 acquisitions, Sierra Pacific Mortgage and Nations Reliable Lending.

What the release does not say matters to a borrower:

• It does not say DSCR (debt-service-coverage-ratio) loans are part of the product line, although investor loans fall inside “non-traditional borrowers like self-employed individuals and real estate investors.”
• It does not say who now services loans AmeriTrust already closed, or who owns loans AmeriTrust sold.
• It does not give a price, a closing date or what AmeriTrust Mortgage Corporation itself still does. The Baltimore Banner wrote that AmeriTrust “sold all of its loans” to Union Home “for an undisclosed price”; the release says origination assets. Treat the release as the primary statement and the Banner wording as unconfirmed.

Union Home is a separate, privately held company; no source we saved says it is a defendant in either suit.

What the two suits allege (as reported)

The alleged pattern, as HousingWire and The Baltimore Banner describe the AmeriTrust complaint: special-purpose LLCs bought Baltimore properties for about $40,000 to $50,000, resold them without improvements to related entities for about $200,000, and those entities applied to AmeriTrust through the broker with appraisals and title reports that left out the recent low-price sales. The complaint says the buyers had no intention of repaying and stopped paying within the first few payments. AmeriTrust says it sold the loans after closing, that buyback clauses then forced it to take them back, and that the loans “have little to no value and are uncollectible.” National Mortgage News says the second suit alleges appraisal photographs that did not match the property, and resales closed within weeks.

These are one side's allegations. A defendant may deny all of them. We name companies only, as the court record does for entities, and do not name any individual.

The broader context is public: The Baltimore Banner reported in 2025 and 2026 on a wave of Baltimore foreclosures tied to investor DSCR loans, and HousingWire wrote that those loans came from dozens of private lenders and that more than half ultimately defaulted. Our own pages on DSCR loans in Maryland and hard money loans in Maryland count the market from the federal loan file.

AmeriTrust's own public loan record: the 2025 HMDA file

Lenders that report under the Home Mortgage Disclosure Act put their loans in a federal file. AmeriTrust Mortgage Corporation appears on the FFIEC 2025 filer list under ID 549300A5HHOL2ED18C72. We downloaded every state file for 2025 and counted its records on November 5, 2026. Every record in our download is an originated loan.

Reading the business-purpose loans, which are the ones relevant to investors:

• All 1,290 were on non-owner-occupied property, 1,253 first liens and 37 second liens; 1,281 had a 360-month term. Purpose: 715 cash-out refinancings, 348 home purchases and 227 refinancings.
• Price: median note rate 7.125%, middle half 6.875% to 7.5%; 135 loans (10.5%, our arithmetic) were at 8.0% or higher. 187 reported an interest-only payment.
• Buildings: 957 one-unit, 166 two-unit, 67 three-unit, 83 four-unit and 17 of five to 24 units.
• Sold quickly: 1,279 of the 1,290 (99.1%, our arithmetic) were sold in 2025 to purchaser type 71, the HMDA code for a credit union, mortgage bank or finance company. That fits the buyback mechanism the suits describe: a loan sold on can come back if the buyer claims a breach.
• Where: California 390, Texas 140, Florida 82, Ohio 45, North Carolina 39, Oklahoma 32, Nevada 31, Idaho 30. Maryland: 18 loans, $5,630,000; the Baltimore-Columbia-Towson metro area: 9.

Two cautions. First, the 2025 file does not contain the Baltimore loans in the suits, which date from 2024 or earlier; Maryland's 18 loans are 1.4% of the business-purpose count (our arithmetic), so the file does not show a Baltimore concentration in 2025. Second, HMDA reports business-purpose loans only when they are for home purchase, home improvement or refinancing, so it is a partial view of a lender's investor book. It has no DSCR ratio, credit score or points.

Worked numbers (our arithmetic)

• Suit 1: $14,076,000 / 90 loans = $156,400 a loan ($154,681 on 91 loans). Against the $305,000 median business-purpose loan in 2025, that is 51.3%; the years differ, so use it for scale only.
• Suit 2: $10,000,000 / 59 loans = at least $169,492 a loan, because the reported loss is "more than $10 million."
• Together: 90 plus 59 is 149 loans. We do not know whether any loan appears in both suits.
• Against AmeriTrust's 2025 business-purpose volume: $14,076,000 / $599,400,000 = 2.3%.

What a reader can do with this

1. If a loan of yours is in the pipeline with a broker who used AmeriTrust: ask the broker in writing who will close and fund it now, whether your rate lock and terms still stand, and who will service it. The release does not answer these.
2. If you already have an AmeriTrust loan: keep the closing documents and any servicing-transfer notice, and read who the notice says to pay. A change of servicer does not change your note terms; confirm that in the notice, not in a phone call.
3. If you are a buyer of a rehabbed or recently flipped house: the suits describe resale prices several times a purchase price within months. Ask your own appraiser for the property's sale history for 36 months, and compare it with what the seller's paperwork says. This is a check on the file, not an accusation about any seller.
4. If you use a wholesale lender: ask whether it can repurchase loans and how, and that the answer be in your broker agreement or lender approval terms.
5. Do not read a lawsuit as a verdict. Check the docket on PACER or CourtListener for answers, motions to dismiss and rulings before you rely on any figure here. Compare lenders on the federal loan file instead: see DSCR lenders compared, the 2025 HMDA counts of RCN Capital, Lima One and LendingOne and our RCN Capital review; RCN Capital is the co-plaintiff in suit 2.

This is analysis of public documents, not investment, legal or tax advice. It does not say that any named company or person did anything wrong; the court has decided nothing.

Kiavi pays us a referral fee when a loan closes through the button in the box below. The facts above are the same either way, and AmeriTrust, Union Home and the other companies named are not affiliates. Visio and Lima One are shown as alternatives.

FAQ

Sources: Union Home Mortgage, "Union Home Mortgage acquires origination assets of AmeriTrust Mortgage Corporation," July 21, 2026 (uhm.com); HousingWire, September 14, 2026; The Baltimore Banner, September 10, 2026; Law360 Real Estate Authority case listing, September 21, 2026 (case numbers and filing dates); National Mortgage News, October 30, 2026 (updated November 2, 2026); FFIEC and CFPB HMDA 2025 loan-level data and the FFIEC 2025 filer list, counted by us on November 5, 2026. We could not open the complaints, which are on the federal court system (PACER); every lawsuit figure above is as reported by the outlet named and is an allegation.