Rocket Mortgage Hit With Class Action Over Illegal Steering Allegations

A new nationwide class action lawsuit is accusing Rocket Companies of illegally steering homebuyers toward its mortgage and closing products — even when better rates may have been available elsewhere.

The lawsuit alleges Rocket and its affiliates pressured real estate agents, including those at Redfin, to funnel clients to Rocket Mortgage and its title company, potentially violating the Real Estate Settlement Procedures Act, or RESPA. Rocket denies the allegations and says it will vigorously defend itself.

In this episode, Kathy Fettke breaks down what the lawsuit claims, how the alleged referral arrangements worked, why the case references a prior Consumer Financial Protection Bureau investigation, and what this could mean for mortgage competition, agent referrals, and consumer choice going forward.

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Source: https://www.scotsmanguide.com/news/class-action-lawsuit-accuses-rocket-of-illegal-steering-scheme/