Based in Detroit rocket companies A class action lawsuit was filed Monday that accuses one of the country’s largest mortgage lenders of steering consumers toward its loan products, “even though Rocket Mortgage’s terms are disadvantageous to customers.”
The lawsuit was filed in United States District Court for the Eastern District of Michigan. The plaintiffs are represented by Hagens Bermana 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 Houses Real Estatewho were also named as defendants, conspired to “pressure customers into using 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 his clients.”
The firm went on to say that until its acquisition of red fin In 2025, Rocket Homes’ website used a “robust referral network” to connect potential homebuyers with third-party real estate agents, who were required to pay a 35% referral fee and direct customers to Rocket Mortgage.
“Every day, families rely on the laws that govern our nation’s housing 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 that at least hundreds of thousands of consumers have been deceived by Rocket’s tricks and, judging by their revenue year after year, their plan has worked.”
A spokesperson for Rocket Companies issued a statement to HousingWire in which the company denied the accusations.
“We categorically disagree and will dispute allegations that Rocket, Redfin, or any of the named defendants are doing anything illegal. The claims in this case are a complete retread of the case that the CFPB filed and was quickly dismissed. Rocket prides itself on helping homebuyers navigate complex real estate partnerships. We are confident that we will be vindicated once the facts are presented,” the statement read.
The lawsuit pointed to Rocket Companies’ third-quarter 2025 earnings report in which the company posted $1.78 billion in revenue, representing 148% year-over-year growth. By this measure, the law firm says, the company’s governance program “has been a resounding success.”
“Buying a home is probably the largest purchase any individual will make in their lifetime, and housing is a basic need,” Berman said. “That Rocket attempted to profit from this by pressuring homebuyers into making bad loans is not only illegal, but also 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 management practices, which came to light due to a four-year federal investigation by the Consumer Finance Protection Bureau (CFPB).
Editor’s note: This story was updated with a statement from Rocket Companies.
