Nationwide Mutual Insurance Co. is suing mortgage lender Nationwide Mortgage Bankers (NMB) for allegedly profiting on the “goodwill and sterling reputation” associated with its name and trademarks.
The lawsuit, filed May 20 in an Ohio federal court, brings accusations of federal trademark infringement, unfair competition, dilution, cybersquatting and violations of Ohio state law. Nationwide Insurance claims the actions have caused “unquantifiable damage and irreparable harm.” National Mortgage News first reported on the topic.
Nationwide said it began providing insurance products and services, as well as other financial services, under the NATIONWIDE mark in 1955. It has offered residential mortgage services under the mark since 1998, although it left retail banking in 2018. Since 2012, when its annual sales exceeded $30 billion and assets exceeded $160 billion, Nationwide claims it has spent many millions of dollars on advertising, marketing and promotion of its brand.
Nationwide Mortgage Bankers said that as of Tuesday, it had not yet been served with the legal paperwork related to the matter and has not had an opportunity to fully review the claims asserted.
“For more than 15 years, helping families across America achieve the dream of homeownership has always and continues to be the mission of our 500 employees across the country,” Tom Butler, a spokesperson for the company, said in a statement given to HousingWire.
“We were surprised by the filing of this lawsuit, particularly given that we have worked with Nationwide Mutual for several years now in an effort to avoid any potential confusion, and our company will continue to do so, responsibly and professionally.”
Butler added that “there will be no disruption to our operations or the services we provide.”
Alleged history of conflict
The insurance company noted in the complaint that in 2012, the U.S. Patent and Trademark Office found that the lender’s mark would create a likelihood of confusion with the NATIONWIDE marks.
A final office action rejecting the lender’s intent-to-use “NATIONWIDE MORTGAGE BANKERS” trademark application was upheld and the application was abandoned in January 2013, according to the suit.
The lawsuit details several specific instances where customers were confused about which company they were interacting with.
In one example cited in the complaint, a consumer wrote to Nationwide Insurance to report a “fake imposter.” The consumer claimed an NMB representative answered the phone with caller ID that read “NATIONWIDE” and asked for the consumer’s Social Security number.
“When I refused he said I would never get approved and told me good luck finding another lender. Very rude and unprofessional!” the consumer wrote, according to the complaint. “After some research I realized this was all fabricated and they are using the name NATIONWIDE MORTGAGE BANKERS to pose as the actual NATIONWIDE.”
Another person trying to reach Nationwide about an insurance policy ended up calling the lender. “The reps answer the phone as this is Nationwide, we’re a big company I’m sure you’ve probably heard of us,” the person reported. “As soon as I asked if they were the real Nationwide he hung up on me.”
A third example in the suit described an existing Nationwide Insurance policyholder who received calls from NMB representatives making deceptive claims. According to the complaint, the representatives told the consumer things like: “As an existing Nationwide policy holder you must complete a refinance with Nationwide in order to maintain your current rate and coverage.”
Nationwide Insurance mentioned it attempted to solve the dispute by reaching out to the lender, which said it would change its mark to NMBNow.
“Defendant’s representation led Nationwide to believe that Defendant would change its branding to the NMBNow mark, but Defendant has failed to do so,” the lawsuit states. “The parties worked on a settlement agreement but ultimately did not reach resolution.”
According to the insurance company, the lender’s “failure to completely rebrand to the NMBNow mark has left Nationwide with no choice but to file suit to protect its valuable intellectual property by seeking an injunction to prevent further infringement of its trademark and related rights in the NATIONWIDE Marks.”
Mortgage data platform RETR shows Nationwide Mortgage Bankers originated $1,7 billion over the past 12 months, most of it tied to conventional and purchase loans. Its loan officer count was 247 as of May 25, according to RETR.
