Suit claims referral network pushed borrowers into costlier Rocket Mortgage loans
A new consumer class action targets Rocket Companies and several affiliates, accusing the Detroit-based group of running a nationwide steering scheme that pushed buyers into higher-cost Rocket Mortgage loans and inflated home prices.
The complaint, filed January 26, 2026, in the US District Court for the Eastern District of Michigan, sought to represent borrowers who financed with Rocket Mortgage or Quicken Loans from Jan. 1, 2019 onward.
According to the lawsuit, Rocket Companies Inc. and affiliates Rocket Mortgage, Rocket Homes and Amrock “exploited the vulnerability of home buyers for profit” by directing agents to favor Rocket financing “even though Rocket Mortgage’s terms are disadvantageous to the clients.”
The complaint alleges this steering violated agents’ fiduciary duties and the Real Estate Settlement Procedures Act (RESPA), and asked for treble and single damages, disgorgement and injunctive relief.
How the alleged steering worked
The suit described a referral engine in which Rocket Homes “funnel[ed] leads (in the form of interested buyers or sellers) to real estate agents who, in turn, steer clients to Rocket’s mortgage company,” rather than to cheaper options.
Until its 2025 acquisition of Redfin, Rocket Homes allegedly ran a “vast referral network” whose participating agents paid a 35% “referral fee” and were expected to route clients back to Rocket Mortgage.
“Everyday families rely on the laws governing our nation’s real estate market for fairness and transparency, and we believe Rocket has failed to play by the rules,” Hagens Berman managing partner Steve W. Berman said.
“We believe at least hundreds of thousands of consumers have been duped by Rocket’s tricks, and judging by its year-over-year revenue, its scheme has worked.”
The complaint cited Rocket’s third‑quarter 2025 revenue of $1.78 billion, a 148% year‑over‑year increase, as evidence that “its steering program has been a resounding success.”
“Buying a home is most likely the largest purchase any individual will make in their lifetime, and housing is a basic need,” Berman said.
“That Rocket sought to capitalize on this by pressuring homebuyers into bad loans is not only illegal, but immoral.”
Meanwhile, Rocket rejected the new claims. “We categorically disagree and will dispute the allegations that Rocket, Redfin or any of the named defendants are doing anything illegal. The claims in this case are a complete retread of the case that the CFPB filed and was quickly dismissed. Rocket is proud to help homebuyers navigate complex real estate partnerships. We are confident that we will be vindicated once facts are presented,” a Rocket spokesperson said.
Part of a wider fight over fees and referrals
A separate Consumer Financial Protection Bureau (CFPB) lawsuit previously accused Rocket Homes of an illegal kickback scheme that discouraged homebuyers from comparison shopping and getting the best deal, with director Rohit Chopra arguing that companies should not illegally block competition in ways that drive up the cost of housing.
Real estate economics were already in flux after multibillion‑dollar verdicts and settlements over agent commission-sharing, including National Association of Realtors litigation that could trigger a massive shift in behavior and force buyers to reassess how they pay for advice, according to Anthony Casa, president and chief executive officer of UMortgage.
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