Lawsuit alleges Rocket engaged in illegal steering scheme

Rocket Companies and its subsidiaries are currently facing a nation-wide class action lawsuit filed on Monday, which accuses the mortgage giant of allegedly violating federal law by coercing real estate agents to direct homebuyers to Rocket Mortgage loans. The complaint, lodged at the U.S. District Court for the Eastern District of Michigan by consumer-right law firm Hagens Berman, alleges that Rocket administers a “pay-to-play” referral scheme that breaches federal regulations.

The lawsuit contends that Rocket Homes and Redfin agents are compelled to steer clients towards Rocket Mortgage and its title company, Amrock (now known as Rocket Close), regardless of the availability of better rates elsewhere, with the goal of “preserving and protecting” the lender’s business. These actions are purported to infringe the Real Estate Settlement Procedures Act (RESPA), which prohibits kickbacks and unearned fees in real estate settlement services.

Rocket refutes the claims made against them, with a company spokesperson stating that Rocket, Redfin, or any of the defendants have not engaged in any illegal activities. They have expressed confidence that they will be exonerated once all the facts are presented. The lawsuit seeks triple damages for consumers who bought homes financed by Rocket Mortgage or Quicken Loans between January 1, 2019, and the present day.

The focal point of the lawsuit revolves around an agreement called the “Preserve and Protect” agreement that Rocket Homes required its partner agents to sign. This agreement, according to the complaint, mandates that agents must “preserve and protect the relationship between the client and Quicken Loans.” Agents were warned against steering clients away from Quicken Loans, with the threat of termination from Rocket if they violated this directive.

In return for adhering to these alleged practices, agents purportedly received a continuous flow of referrals, which are vital for their earnings. The complaint singles out Rocket’s acquisition of Redfin in July 2025 for $1.75 billion, asserting that Rocket had purchased the brokerage to internalize its steering tactics after facing regulatory scrutiny.

Plaintiffs assert that Redfin agents were offered more leads if they directed clients to Rocket Mortgage, a practice not covered under RESPA’s safe harbor protections for an “affiliated business.” Redfin opted not to comment on the matter and referred to Rocket’s statements denying any illicit practices.

The legal action relies heavily on a four-year inquiry by the Consumer Financial Protection Bureau (CFPB). In December 2024, the CFPB took action against Rocket for similar steering violations, although the case was dismissed in February 2025 under the Trump administration. The plaintiffs consider this move an endeavor to weaken the agency rather than a dismissal based on the case’s merits.

The lawsuit involves three named plaintiffs from Georgia, North Carolina, and Pennsylvania, who claim they were coerced by their agents into using Rocket Mortgage without being presented with alternative options. The defendants named in the suit are Rocket Companies Inc., Rocket Mortgage LLC, Amrock Holdings LLC, and Rocket Homes Real Estate LLC.