Rocket Homes Faces Allegations of Illegal Kickbacks in Mortgage Scheme
The CFPB accuses Rocket Homes and The Jason Mitchell Group of a kickback scheme to steer mortgage applications to Rocket affiliates. Rocket Homes denies the claims and plans to fight the lawsuit.
The U.S. Consumer Financial Protection Bureau (CFPB) has accused Rocket Homes, a part of Rocket Companies, and The Jason Mitchell Group of real estate agencies of being involved in an illegal kickback scheme. The scheme allegedly involved sending mortgage applications back to Rocket's mortgage affiliates, such as Rocket Mortgage and Amrock.
According to the CFPB, Rocket Homes, one of the biggest mortgage lenders in the U.S., gave real estate agents rewards for referring clients to Rocket Mortgage. These rewards included $250 gift cards, which they called "dog bone" awards. This practice encouraged agents to steer clients toward Rocket’s services, making it harder for people to compare mortgage options and potentially find better deals.
Rohit Chopra, the director of the CFPB, criticized this behavior, saying, “Rocket Homes discouraged homebuyers from shopping around for the best deal. When so many people struggle to afford homes, companies shouldn’t block competition and drive up costs.”
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Rocket Homes Denies the Claims
Rocket Homes disagrees with the allegations, calling the lawsuit “weak” and promising to fight it in court. The company said that data shows one-third of customers who started a loan application with Rocket Mortgage ended up choosing a different lender after contacting Rocket Homes.
“The facts are clear,” Rocket Homes said in a statement. “We are focused on helping homebuyers make the best choices for their needs.”
No Comment from Jason Mitchell Group
Representatives for The Jason Mitchell Group have not responded to the lawsuit yet.
Increased Scrutiny for Big Banks and Companies
This lawsuit against Rocket Homes is just one of several recent actions from the CFPB. The agency has also taken legal action against major banks like JPMorgan Chase, Bank of America, and Wells Fargo over issues related to peer-to-peer payment fraud. This shows that the CFPB is cracking down on companies that may be harming consumers, especially in areas like housing and finance.
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