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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20 thoughts onRocket Mortgage class action alleges illegal steering to in-house mortgage and title services
I was unaware that theree were aditional fees applied. I was also told that I had a 15 year refinance mortgage and by making additional payments, this would lower my principal as well as years to payoff and yet I see no significant changes and despite I did make additional payments for at least 18 months I see no reduction in the time nor principal.
I refinanced my home with Rocket Mortgage in 2022 and didn’t know about all the fees they charged
They added a lot of fees never knew i had to pay to close on a home equity loan. They misguided the customer
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I financed with Rocket.I went from a Conventional.And without telling me they financed my loan into a FHA ..but when the agent called my appraisal was higher if I want extra cash.He NEVER informed me that by doing so my now FHA loan required 20 percent down.I signed on my cell ..received the actual paper work after the 3 day Ohio law and when I noticed a PMI ..I called and told I would have to refinance
This article does not mention anywhere if an Affiliated Business Agreement was included in any contract paperwork before starting the financing process. If this was a practice, then this law suit will have a tough time winning in their favor.
I agree that this is and should be illegal. Homebuyers should not be pressured by their realtors to choose a particular lender. But why isn’t it illegal for members of congress and the senate to receive kickbacks from corporations and special interest groups to motivate them to pass bills or change laws? It’s no different than Rocket paying realtors.
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They filled my inbox even though I blocked them