Lawsuit seeks to represent those who financed a mortgage with Rocket or Quicken Loans since 2019
DETROIT–(BUSINESS WIRE)–$RKT #classaction–A new consumer class-action lawsuit filed against Rocket companies (including Rocket Mortgage and Rocket Homes) accuses the Michigan-based lending conglomerate of forcing agents to steer clients to use Rocket Mortgage, to the detriment of homebuyers across the country, according to attorneys at Hagens Berman.
The lawsuit was filed Jan. 26, 2026, in the U.S. District Court for the Eastern District of Michigan and accuses the collective 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.” The practice of steering in real estate involves any illegal influence on a client’s decision diverting them away from cheaper loans. 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 new lawsuit comes as part of consumer-protection law firm Hagens Berman’s efforts to create a more transparent real estate system, following on the heels of similar litigation aimed at Zillow Inc., and the firm’s blockbuster settlements regarding real estate brokerage fees totaling more than $1 billion, dubbed “the realtors’ big defeat” by the New York Times.
A Successful Scheme
The lawsuit explains Rocket’s alleged scheme that 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,” away from other providers with cost-saving opportunities, in violation of a real estate agent’s fiduciary duties to their clients.
Until its acquisition of Redfin in 2025, Rocket Homes operated a vast referral network through its website, which connected prospective home buyers with third party real estate agents. Agents were required to pay a 35% “referral fee” to Rocket Homes, according to the lawsuit. In return, agents were required to 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.”
According to the lawsuit, third quarter revenue for 2025 (released on October 30, 2025) shows a 148% year-over-year growth for the quarter of $1.78 billion. “By all of these measures, its steering program has been a resounding success,” the lawsuit states.
“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.”
How Steering Harms Homebuyers
The lawsuit brings claims of violation of the Real Estate Settlement Procedures Act (RESPA) and seeks treble damages, single damages, disgorgement and injunctive relief to put an end to Rocket’s alleged steering practices, which were brought to light due to a four-year federal investigation by the Consumer Finance Protection Bureau.
“Based on this investigation, consumers were directly harmed by the steering practice because Rocket Mortgage, and its predecessor, Quicken Loans, offered substandard loan packages that charged higher interest rates and offered fewer cost-saving opportunities for home buyers,” the lawsuit states. “As a result of these substandard loans, ‘Rocket Mortgage charged higher rates and fees to consumers who went through the Rocket Homes network compared with consumers who didn’t go through the network’ – a clear sign of illegal steering.”
According to the lawsuit, the defendants were engaged in a perpetual loop of illegal referrals and kickbacks through agents, Rocket Homes and Rocket Mortgage, steering homebuyers through a process that left them paying higher prices via bad loans.
Find out more about the lawsuit against Rocket alleging illegal steering practices.
Hagens Berman is a global plaintiffs’ rights complex litigation law firm with a tenacious drive for achieving real results for those harmed by corporate negligence and fraud. Since its founding in 1993, the firm’s determination has earned it numerous national accolades, awards and titles of “Most Feared Plaintiff’s Firm,” MVPs and Trailblazers of class-action law. More about the law firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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