A class-action lawsuit has been filed against Rocket Mortgage and its affiliated companies alleging the Michigan-basesd lending conglomerate forced agents to steer clients to use Rocket Mortgage to homebuyers’ detriment.
“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,” said Steve W. Berman, Managing Partner and co-founder of the Hagens Berman law firm, which filed the lawsuit. “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.”
Rocket Companies denied the allegations.
“We categorically disagree and will dispute the allegations that Rocket, Redfin or any of the named defendants are doing anything illegal,” a Rocket Companies spokesperson said. “We are confident that we will be vindicated once facts are presented.”
Lawsuit was Filed on Jan. 27
According to Hagens Berman, the lawsuit was filed Jan. 26, in the U.S. District Court for the Eastern District of Michigan and accuses the defendants of having “exploited the vulnerability of home buyers for profit,” by steering consumers to use their financing “even though Rocket Mortgage’s terms are disadvantageous to the clients.”
According to the lawsuit, the practice of steering in real estate involves any illegal influence on a client’s decision diverting them away from cheaper loans. The defendants include Rocket Companies Inc., which owns equity interests in co-defendants Rocket Mortgage LLC, Amrock Holdings LLC, and Rocket Homes Real Estate LLC, the law firm said.
The new lawsuit against Rocket follows similar litigation aimed at Zillow Inc. that was filed in September in Seattle. That lawsuit alleged that Zillow is misleading prospective buyers into contacting agents working with Zillow and not the agent who listed the home for sale.
According to the lawsuit against Rocket Companies, Rocket’s alleged scheme compels real estate agents to pressure clients to use Rocket’s mortgage company to finance their purchase.
“In exchange, the Rocket Defendants funnel leads (in the form of interested buyers or sellers) to real estate agents who, in turn, steer clients to Rocket’s mortgage company,” and away from other providers with cost-saving opportunities, in violation of a real estate agent’s fiduciary duties to their clients, according to the lawsuit.
Until its acquisition of Redfin in 2025, Rocket Homes operated a vast referral network through its website that connected prospective home buyers with third party real estate agents. According to the lawsuit, agents were required to pay a 35% “referral fee” to Rocket Homes, and in return, the lawsuit said, agents were required to steer clients to Rocket Mortgage.
Rocket’s third quarter 2025 revenue showed a 148% year-over-year growth for the quarter of $1.78 billion.
