The Consumer Financial Protection Bureau (CFPB) is suing Rocket Homes for providing kickbacks to real estate brokers and agents to steer prospective borrowers to Rocket Mortgage for loans.
The CFPB is also suing Jason Mitchell, his real estate brokerage firm, JMG Holding Partners LLC, which does business as The Jason Mitchell Group, and the individual real estate brokerage companies in the 41 states and the District of Columbia where it does business (The Mitchell Group), for their role in the unlawful scheme.
The suit alleges Rocket Homes pressured real estate brokers and agents not to share valuable information with their clients concerning products not offered by Rocket Mortgage, such as the availability of down payment assistance programs, which often save homebuyers thousands of dollars, the CFPB says in a release.
The CFPB says it is suing to not only stop the kickback scheme, but also to provide consumer redress and obtain a civil penalty, which will be deposited into the CFPB’s victims relief fund.
“Rocket engaged in a kickback scheme that discouraged homebuyers from comparison shopping and getting the best deal,” says Rohit Chopra, director of the CFPB, in a statement. “At a time when homeownership feels out of reach for so many, companies should not illegally block competition in ways that drive up the cost of housing.”
In response to the suit, Rocket Homes issued the following statement:
“The CFPB’s allegations are false and a distortion of reality. The accusation that homebuyers paid more when working with Rocket Homes is a lie. Additionally, the notion that Rocket Homes penalized real estate brokers or agents for helping clients compare rates and choose the best lender for them is also a lie.
The facts are clear – data shows one third of consumers with a loan application already in progress with Rocket Mortgage, before contacting Rocket Homes, chose to close with a different lender. This proves Rocket Homes is committed to empowering homebuyers to make the best decisions for their unique needs. Rocket Homes has always focused on connecting buyers with top-performing agents based on measurable success metrics.
Director Chopra’s transparent ploy to bolster his political agenda before the changing of administrations is a reckless and shocking misuse of public resources. This flimsy lawsuit is just the latest in a tidal wave of legal actions by a desperate Chopra hungry for headlines.
Rocket Homes will not rest until these baseless allegations are fully dismissed, and the CFPB redirects its focus to real issues that genuinely impact consumers.”
