Rocket Companies sued for allegedly steering, inflating home prices in class-action lawsuit

Rocket Companies is facing a class-action lawsuit following allegations of steering clients toward using Rocket Mortgage and inflating home prices. The lawsuit, initiated on Jan. 26 in the U.S. District Court for the Eastern District of Michigan, contends that Rocket Companies, a Michigan-based lending conglomerate, compelled agents to direct clients to use Rocket Mortgage. This practice was claimed to be at the expense of homebuyers nationwide.

The lawsuit, named Waller v. Rocket Companies, et al., was brought forward by plaintiffs Barbara Walter, Elizabeth Johnson, and Randel Clark. The defendants in the lawsuit include Rocket Mortgage, Amrock Holdings, and Rocket Homes Real Estate. The lawsuit alleges that the defendants took advantage of homebuyer vulnerability for financial gain by steering consumers towards using their financing, despite Rocket Mortgage’s less favorable terms.

In addition to steering clients, Rocket Companies is accused of channeling leads to real estate agents who, in return, promoted Rocket’s mortgage company over other more advantageous options. This action was flagged as a violation of a real estate agent’s fiduciary responsibilities towards their clients. The lawsuit also highlighted Rocket Homes’ referral network, where real estate agents were obligated to pay a 35% referral fee to Rocket Homes. This, according to the lawsuit, amounts to unfair exploitation of buyers and sellers within the real estate market.

The lawsuit further emphasized Rocket’s significant financial growth, marked by a $1.78 billion revenue in Q3 of 2025, reflecting a 148% year-over-year increase. These figures insinuate that Rocket’s steering program has been exceptionally successful, causing possible detriment to homebuyers. Managing partner and co-founder of Hagens Berman, Steve W. Berman, stated that Rocket’s actions are believed to have deceived hundreds of thousands of consumers. He condemned Rocket’s alleged scheme as both illegal and unethical.

The lawsuit alleges that Rocket has disregarded the Real Estate Settlement Procedures Act (RESPA) and is requesting treble damages, single damages, disgorgement, and injunctive relief to cease the alleged steering practices. These practices were unveiled during a four-year federal inquiry by the Consumer Finance Protection Bureau. Rocket responded by refuting the allegations, advising that they have complied with all legal standards and that the claims are based on a case previously dismissed by the CFPB.

Rocket asserted its commitment to aiding homebuyers in navigating complex real estate partnerships and expressed confidence that the truth would exonerate them. This story is ongoing, and further developments are awaited. Stay connected to RISMedia for updates.