The Consumer Financial Protection Bureau (CFPB) has accused Rocket Homes, a unit of Rocket Companies, and The Jason Mitchell Group of real estate brokerages of engaging in an illegal kickback scheme to steer mortgage applications back to Rocket. According to the CFPB, Rocket Homes provided referrals and other inducements to the brokerages in exchange for them steering real estate settlement business back to a Rocket affiliate. The CFPB alleges that Jason Mitchell, a representative of The Jason Mitchell Group, offered “dog bone” awards of $250 gift cards to agents who made the most referrals back to favored partners, including Rocket affiliates Amrock and Rocket Mortgage.
The CFPB claims that Rocket’s scheme discouraged homebuyers from comparison shopping and getting the best deal, and that it is illegal. “Rocket engaged in a kickback scheme that discouraged home-buyers from comparison shopping and getting the best deal,” said CFPB Director Rohit Chopra. “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.”
Rocket Homes has rejected the CFPB’s allegations, calling the lawsuit “flimsy” and vowing to fight it. The company claims that data shows that one-third of consumers with a loan application already in progress with Rocket Mortgage chose to close with a different lender, proving that Rocket Homes is committed to empowering homebuyers to make the best decisions for their unique needs.
The CFPB’s announcement marks the third major action taken by the agency since Friday, following lawsuits against Walmart, JPMorgan Chase, Bank of America, and Wells Fargo over their alleged mishandling of fraud on peer-to-peer payments.
