Detroit-based Rocket Companies was hit with a class-action lawsuit on Monday that accuses one of the nation’s largest mortgage lenders of steering consumers to their loan products, “even though Rocket Mortgage‘s terms are disadvantageous to the clients.”
The suit was filed in the U.S. District Court for the Eastern District of Michigan. The plaintiffs are represented by Hagens Berman, a consumer protection law firm that was also involved in similar litigation against Zillow and the National Association of Realtors.
In a press release announcing the action, the law firm said that Rocket — including its affiliates Rocket Mortgage, Amrock Holdings and Rocket Homes Real Estate, which were also named as defendants — conspired to “pressure clients to use Rocket’s mortgage company to finance their purchase.” The defendants are also accused of funneling leads to real estate agents who push clients to Rocket and “away from other providers with cost-saving opportunities, in violation of a real estate agent’s fiduciary duties to their clients.”
The firm went on to say that up until its acquisition of Redfin in 2025, Rocket Homes’s website utilized a “vast referral network” to connect prospective homebuyers with third-party real estate agents, who were required to pay a 35% referral fee and steer clients to Rocket Mortgage.
“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 Hagens Berman. “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 did not immediately respond to HousingWire‘s request for comment.
The lawsuit pointed to Rocket Companies’ third-quarter 2025 earnings report in which the company posted $1.78 billion in revenue, good for year-over-year growth of 148%. By this measure, the law firm states, the company’s steering program “has been a resounding success.”
“Buying a home is most likely the largest purchase any individual will make in their lifetime, and housing is a basic need,” Berman said. “That Rocket sought to capitalize on this by pressuring homebuyers into bad loans is not only illegal, but immoral.”
The lawsuit claims that Rocket violated the Real Estate Settlement Procedures Act (RESPA). It seeks treble damages, single damages, disgorgement and injunctive relief to stop Rocket’s alleged steering practices, which were brought to light due to a four-year federal investigation by the Consumer Finance Protection Bureau.
Editor’s note: This is a developing story and will be updated as more information becomes available.
English