Based in Detroit Rocket companies was hit Monday with a class action lawsuit accusing one of the nation’s largest mortgage lenders of steering consumers toward its loan products “even though Rocket Mortgage’s terms are disadvantageous to customers.”
The charges were filed in the 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 lawsuits against Zillow and the National Association of Real Estate Agents.
In a press release announcing the action, the law firm said that Rocket – including its subsidiaries Rocket mortgage, Amrock Holdings And Rocket Homes real estatewho were also named as defendants – conspired to “pressure customers to use 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 “keep them away from other providers with cost-saving opportunities in violation of a broker’s fiduciary duties to its clients.”
The company continued to say that until the acquisition of Redfin in 2025, Rocket Homes’ website used an “extensive referral network” to connect potential homebuyers with third-party real estate agents, who were charged a 35% referral fee and sent customers to Rocket Mortgage.
“Regular families rely on the laws that govern our nation’s real estate market for fairness and transparency, and we believe Rocket has failed to follow 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 annual revenues, this scheme has worked.”
Rocket Companies did not immediately respond HousingWire‘s request for comment.
The lawsuit pointed to Rocket Companies’ third-quarter 2025 earnings report, in which the company posted revenue of $1.78 billion, good for year-over-year growth of 148%. By this measure, the law firm said, the company’s management program “has been a resounding success.”
“Buying a home is most likely the largest purchase an individual will make in their lifetime, and housing is a basic need,” Berman said. “The fact that Rocket tried to take advantage of this by pressuring home buyers into bad loans is not only illegal, but also immoral.”
The lawsuit alleges that Rocket violated the Real Estate Settlement Procedures Act (RESPA). It seeks treble damages, single damages, disgorgement and injunctive relief to end Rocket’s alleged steering practices, which came to light following a four-year federal investigation by the Consumer Finance Protection Bureau.
Editor’s note: This is a developing story and will be updated as more information becomes available.
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