Rocket Mortgage class action alleges illegal steering to in-house mortgage and title services

Rocket Mortgage class action lawsuit overview:

• Who: Three homeowners filed a class action lawsuit against Rocket Companies Inc., Rocket Mortgage LLC, Amrock Holdings LLC and Rocket Homes Real Estate LLC.
• Why: The plaintiffs claim Rocket Mortgage illegally steered homebuyers to its in-house mortgage and title services.
• Where: The class action lawsuit was filed in Michigan federal court.

A new class action lawsuit alleges Rocket Companies and its subsidiaries illegally steered homebuyers to its in-house mortgage and title services.

Plaintiffs Barbara Waller, Elizabeth Johnson and Randel Clark claim Rocket Mortgage exploited homebuyers by coercing real estate agents to steer clients towards its mortgage services, even when Rocket Mortgage’s terms were less favorable.

Waller, Johnson and Clark argue the alleged scheme involved rewarding agents with leads in exchange for steering clients to Rocket’s mortgage company, Rocket Mortgage LLC, and its title company, Amrock LLC, in violation of the Real Estate Settlement Procedures Act (RESPA), which prohibits kickbacks and unearned fees in real estate transactions.

“All of this conduct is textbook steering,” the Rocket Mortgage class action says. 

Waller, Johnson and Clark want to represent a nationwide class of individuals who, from Jan. 1, 2019, to the present, bought a home, and used Rocket Mortgage or Quicken Loans to finance their purchase. 

Rocket Mortgage steering scheme uncovered through a four-year investigation, class action says

Waller, Johnson and Clark claim Rocket Homes operated a referral network that connected homebuyers with third-party real estate agents, who were then required to pay a 35% referral fee to Rocket Homes if they closed deals as buyer’s agents.

In exchange for these leads, agents were required to steer clients to Rocket Mortgage, violating their fiduciary duties to serve their clients’ best interests, the Rocket Mortgage class action alleges.

The alleged scheme was uncovered through a four-year investigation by the U.S. Consumer Financial Protection Bureau (CFPB), which found that Rocket Mortgage and its predecessor, Quicken Loans, offered substandard loan packages with higher interest rates and fewer cost-saving opportunities, according to the lawsuit. 

As a result, consumers who went through the Rocket Homes network paid more than those who didn’t, the Rocket Mortgage class action lawsuit alleges.

In addition to allegedly violating RESPA, the class action lawsuit claims Rocket Mortgage is guilty of unjust enrichment. 

The plaintiffs demand a jury trial and request injunctive relief along with an award of treble and single damages for themselves and all class members. 

In a previous case involving mortgage companies, a group of homeowners sued Optimal Blue LCC and more than two dozen mortgage lenders over claims they conspired through Optimal Blue’s pricing software to secretly share sensitive data and fix mortgage rates nationwide.

Have you purchased a home that was financed by Rocket Mortgage or Quicken Loans? Let us know in the comments.

The plaintiffs are represented by Steve W. Berman and Jerrod C. Patterson of Hagens Berman Sobol Shapiro LLP.

The Rocket Mortgage class action lawsuit is Waller, et al. v. Rocket Companies Inc., et al., Case No. 2:26-cv-10270, in the U.S. District Court for the Eastern District of Michigan.

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