Rocket Mortgage Class Action Alleges Illegal Steering To In-House Mortgage And Title Services, RESPA Violations Could Cost Hundreds Of Thousands
A new class action lawsuit alleges Rocket Companies and its subsidiaries illegally steered homebuyers to its in-house mortgage and title services. Plaintiffs Barbara Waller, Elizabeth Johnson and Randel Clark claim Rocket Mortgage exploited homebuyers by coercing real estate agents to steer clients towards its mortgage services, even when Rocket Mortgage’s terms were less favorable.
The lawsuit, filed January 26, 2026 in Michigan federal court (Case No. 2:26-cv-10270), comes on the heels of a four-year CFPB investigation that uncovered the alleged scheme.
How The “Pay-To-Play” Scheme Worked
Rocket Homes, an affiliate of Rocket Mortgage, allowed for higher rates and fees to charged to consumers who used the Rocket Homes network and offered agents and brokers increased referrals in exchange for steering more consumers with no affiliation to Rocket to the network and away from other providers.
Here’s the alleged scheme breakdown:
Step 1 – The Hook: Rocket Homes operated a referral network connecting homebuyers with real estate agents through its website.
Step 2 – The Fee: Those agents were required to pay a 35% referral fee if they closed on a deal as a buyer agent.
Step 3 – The Steering: “In exchange for these leads, agents were required to steer clients to Rocket Mortgage, LLC (Rocket’s mortgage company) and away from other mortgage providers — all in violation of a real estate agent’s fiduciary duties to her clients,” the lawsuit states.
Similar patterns emerged in the DR Horton Class Action Lawsuit, where the homebuilder and its mortgage subsidiary DHI Mortgage allegedly suppressed property tax estimates to artificially lower monthly payments.
The “Preserve And Protect” Agreement
At the center of the lawsuit is an agreement Rocket Homes required its partner agents to sign, known as the “Preserve and Protect” agreement.
The lawsuit alleges that Rocket Homes warned agents that “purposefully steering a client from Quicken Loans to another mortgage lender is prohibited and could result in termination” of the agent’s relationship with Rocket.
Rocket Homes threatened, suspended and sometimes removed real estate agents that didn’t adequately steer their clients away from other mortgage lenders, according to the CFPB investigation.
Agents were reportedly “reprimanded” for:
- Suggesting clients get second opinions from other lenders
- Helping clients access down payment assistance programs Rocket didn’t offer
- Recommending USDA loans or manufactured housing loans
- Comparing Rocket’s terms with competitors
The Redfin Acquisition: Bringing It All In-House
Rocket announced it had acquired the brokerage service in March 2025—just three months after the CFPB investigation concluded.
The filing claims that Rocket’s primary goal in the acquisition, which occurred only three months after the CFPB’s investigation concluded, was to “bring the steering practice in-house” after it was “caught by the CFPB”.
“Rocket also compelled agents and brokers to refer clients to Rocket Mortgage even when those clients had no prior connection to Rocket Mortgage”, the lawsuit alleges.
Substandard Loans Cost Consumers More
“Based on this investigation, it was revealed that consumers were directly harmed by the steering practice because Rocket Mortgage and its predecessor, Quicken Loans, offered substandard loan packages”, the filing states.
“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”, according to evidence from the CFPB complaint.
This case shares troubling similarities with the Wells Fargo Mortgage Forbearance Settlement, where the bank improperly managed mortgage accounts during COVID-19, causing significant harm to borrowers.
Who Qualifies For This Lawsuit?
The suit seeks treble damages for a proposed class of consumers who purchased a home financed by Rocket Mortgage or Quicken Loans from Jan. 1, 2019, to the present.
You may qualify if:
- You financed a home purchase with Rocket Mortgage or Quicken Loans between January 1, 2019 and present
- A real estate agent referred you to Rocket Mortgage
- Your agent was part of the Rocket Homes referral network or worked for Redfin
No action needed yet: In exchange for these leads, agents were required to steer clients to Rocket Mortgage, violating their fiduciary duties to serve their clients’ best interests. If class certification is granted, you’ll be automatically included and notified.
Rocket’s Response: “Categorically Disagree”
“We categorically disagree and will dispute the allegations that Rocket, Redfin or any of the named defendants are doing anything illegal,” said a Rocket Companies spokesperson.
“The claims in this case are a complete retread of the case that the CFPB filed and was quickly dismissed”, the spokesperson continued—though the CFPB case filed in December 2024 actually remains pending, not dismissed.
What “Steering” Means Under RESPA
The practice of steering in real estate involves any illegal influence on a consumer’s choice of settlement service providers.
The Real Estate Settlement Procedures Act (RESPA) prohibits kickbacks and referral fees that:
- Influence consumer choice without their knowledge
- Result in higher costs or less favorable terms
- Violate agent fiduciary duties to clients
- Create quid pro quo arrangements between lenders and agents
“All of this conduct is textbook steering”, the complaint states.
Critical Questions Answered
What is steering in mortgage lending?
Steering occurs when lenders, agents, or brokers influence borrowers toward specific mortgage products or services through kickbacks, referral fees, or pressure—rather than helping borrowers find the best terms based on their needs. Under RESPA, steering that benefits the lender or agent at the borrower’s expense is illegal.
Am I eligible if I was happy with my Rocket Mortgage?
Yes. You may still be part of the class. The lawsuit alleges Rocket’s practices violated federal law regardless of individual satisfaction. The claim is that you were denied the opportunity to compare rates and may have paid more than necessary.
Do I need to hire a lawyer?
No. Hagens Berman works on contingency. However, if your damages are substantial (like paying tens of thousands extra in interest), consult an attorney about opting out and filing individually.
When will there be a settlement?
There’s no settlement timeline yet. The case must survive Rocket’s motion to dismiss, proceed through discovery, achieve class certification, then either settle or go to trial—typically 18-36 months minimum.
What should I do right now?
Start gathering: mortgage application and closing documents, communications with your real estate agent about lender selection, Good Faith Estimate or Loan Estimate showing your interest rate, evidence of when you closed, and records showing which agent referred you to Rocket Mortgage.
Can I still refinance with Rocket Mortgage while this case is pending?
Yes, but be aware the lawsuit alleges systematic issues with their lending practices. Shop around and compare at least three lenders’ terms before committing.
Does this apply to refinances or only purchases?
The lawsuit covers home purchases, not refinances. However, if you were steered to refinance through the same network, you may have claims.
Last Updated: February 14, 2026
Disclaimer: This article provides informational content only and does not constitute legal advice. Homebuyers should preserve mortgage documents and consult qualified attorneys about potential claims.
Next Steps: If you financed a home with Rocket Mortgage between 2019-present, gather your closing documents, loan estimates, and agent communications. Watch for future class action notices.
Stay informed, stay protected. — AllAboutLawyer.com
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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