A new consumer class-action lawsuit was filed against Rocket Companies on Jan. 26 in the U.S. District Court for the Eastern District of Michigan.
According to a press release announcing the action, the Michigan-based lending conglomerate is accused of forcing agents to steer clients toward using Rocket Mortgage. This move, according to attorneys at Hagens Berman, is to the detriment of homebuyers across the country.
The lawsuit is part of law firm Hagens Berman’s efforts to create a more transparent real estate system.
Known as Waller v. Rocket Companies, et al., the lawsuit was filed by plaintiffs Barbara Walter, Elizabeth Johnson and Randel Clark, and accuses the collective defendants (Rocket Mortgage, Amrock Holdings and Rocket Homes Real Estate) 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.”
Defendants are also being accused of “funneling 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.
The release went on to note that up until its 2025 acquisition of Redfin, Rocket Homes operated a “vast referral network” connecting prospective buyers with third-party real estate agents who were required to pay a “referral fee” of 35% to Rocket Homes.
“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.”
The lawsuit pointed to the company’s $1.78 billion Q3 2025 revenue, up 148% year-over-year, noting that “by these measures, its 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,” added Berman. “That Rocket sought to capitalize on this by pressuring homebuyers into bad loans is not only illegal, but immoral.”
The lawsuit claims that Rocket has violated RESPA (the Real Estate Settlement Procedures Act) and is seeking treble damages, single damages, disgorgement and injunctive relief to end Rocket’s alleged steering practices, which were brought to light due to the Consumer Finance Protection Bureau’s four-year federal investigation.
“We categorically disagree and will dispute the allegations that Rocket, Redfin or any of the named defendants are doing anything illegal,” said a Rocket spokesperson. “The claims in this case are a complete retread of the case that the CFPB filed and was quickly dismissed. Rocket is proud to help homebuyers navigate complex real estate partnerships. We are confident that we will be vindicated once facts are presented”
This is a developing story. Stay tuned to RISMedia for updates.
Editor’s Note: This story was updated at 8:48 pm ET with a quote from a Rocket spokesperson.
