Banking and Finance Law Daily Wrap Up, RESPA—Homebuyers bring class action against Rocket entities alleging RESPA steering, (Jan 27, 2026)

By Shashi Kant, BALLB, LLM

Plaintiffs allege referral arrangements and affiliated service practices inflated borrowing costs and limited consumer choice in mortgage and settlement services.

Homebuyers filed a nationwide class action lawsuit against Rocket Companies, Inc., Rocket Mortgage, LLC, Amrock Holdings, LLC, and Rocket Homes Real Estate LLC alleging an illegal steering arrangement that plaintiffs contend inflated mortgage costs and restricted consumer choice in the homebuying process, according to a complaint filed January 26 in the U.S. District Court for the Eastern District of Michigan. Plaintiffs Barbara Waller, Elizabeth Johnson, and Randel Clark allege that the defendants compelled and rewarded real estate agents to steer clients to Rocket Mortgage to finance home purchases, and that the alleged conduct involved kickbacks and referrals prohibited by the Real Estate Settlement Procedures Act, 12 U.S.C. § 2607(a) (Waller v. Rocket Companies, Inc., et al., No. 2:26-cv-10270 (E.D. Mich. Jan. 26, 2026)).

Alleged steering and referral fee structure. According to the complaint, Rocket Homes operated a referral network that connected prospective buyers with third-party real estate agents, and agents were required to pay a 35 percent referral fee to Rocket Homes if they closed deals as buyers’ agents. Plaintiffs allege that, in exchange for leads, agents were required to steer clients to Rocket Mortgage and away from other mortgage providers. The complaint alleges that Rocket Homes used “terms and conditions” documents that included a “Preserve and Protect” requirement and warned that “purposefully steering” a client from Quicken Loans to another lender was prohibited and could result in termination of the broker’s relationship with Rocket Homes. The complaint further alleges that Rocket tracked “Quicken Loans conversion” and mortgage banker “satisfaction rating” metrics to evaluate agent performance and allocate referrals.

CFPB investigation and alleged pricing effects. The complaint states that Rocket acknowledged in SEC filings that in May 2020 the CFPB issued a civil investigative demand to Rocket Homes to determine whether Rocket Homes conducted activities in violation of Real Estate Settlement Procedures Act (RESPA). Plaintiffs allege that a four-year CFPB investigation found that consumers who obtained a mortgage from Rocket Mortgage through the Rocket Homes network paid higher rates and fees than consumers who did not go through the referral network, and the complaint quotes that comparison as evidence of illegal steering. The complaint states that Rocket Homes pressured agents not to recommend certain loan options to clients, including first-time homebuyer assistance, USDA loans, and loans on manufactured housing, because Rocket Mortgage did not offer those options, and the complaint cites CFPB investigative findings for that assertion. The complaint also alleges that Rocket Homes threatened, suspended, and removed agents who did not adequately steer clients away from other mortgage lenders, citing CFPB investigative findings.

In February 2025, the CFPB filed a notice dismissing with prejudice its lawsuit against Rocket Homes Real Estate LLC, after the Bureau had alleged that Rocket Homes pressured real estate brokers and agents not to share information with clients about products not offered by Rocket Mortgage and that Rocket Homes violated RESPA by providing kickbacks in exchange for referrals (see Banking and Finance Law Daily, Feb. 28, 2025).

Title and closing services allegations. Plaintiffs also allege that Rocket Homes directed real estate brokers and agents to steer clients to Amrock for title, escrow, and closing services. The complaint cites a 2022 terms-and-conditions booklet stating that Rocket Homes “encourages” Verified Partner Agents to utilize Amrock for Rocket Homes clients and references training materials that plaintiffs allege reinforced that message.

Post-acquisition conduct alleged. The complaint states that Rocket acquired Redfin in July 2025 and alleges that steering practices continued after the acquisition. Plaintiffs allege that Rocket and Redfin are “affiliated businesses” based on the acquisition and discuss RESPA’s affiliated business arrangement safe harbor requirements, including disclosure and anti-required-use provisions. Plaintiffs allege that Rocket provides Redfin agents a “thing of value” in the form of increased leads if they refer clients to Rocket Mortgage and that the safe harbor does not apply to the alleged arrangement.

Claims and requested relief. Plaintiffs assert a RESPA claim under 12 U.S.C. § 2607(a) on behalf of a proposed nationwide class and an unjust enrichment claim. The complaint defines the proposed class as persons and entities in the United States who, from Jan. 1, 2019, to the present, purchased a home and used Rocket Mortgage or Quicken Loans to finance the purchase. Plaintiffs seek treble damages, single damages, injunctive relief, disgorgement, and costs and attorneys’ fees.

Attorneys: Jerrod C. Patterson (Hagens Berman Sobol Shapiro LLP) for Barbara Waller, Elizabeth Johnson and Randel Clark.

Companies: Rocket Companies, Inc.; Rocket Mortgage, LLC; Amrock Holdings, LLC; Rocket Homes Real Estate LLC

LitigationEnforcement: CFPB Loans MichiganNews Mortgages RESPA TruthInLending