Lender Rocket Homes gave kickbacks to real estate brokers and agents to get homebuyers to sign up for its loans, the Consumer Financial Protection Bureau alleged in a lawsuit on Monday.
The lawsuit aims to stop the alleged kickback scheme, which gave refferals and other incentives to pressure "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 said.
“Rocket engaged in a kickback scheme that discouraged homebuyers from comparison shopping and getting the best deal,” CFPB Director Rohit Chopra said. “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.”
Additionally, the CFPB sued The Jason Mitchell Group, a real estate firm doing business in 41 states and the District of Columbia, for participating in the kickback scheme and referring thousands of homebuyers to Rocket Homes and an affiliate.
For example, the CFPB said The Jason Mitchell Group gave $250 gift cards to agents that made the most referrals to its favored partners: Rocket Mortgage and Amrock, a Rocket Homes-affiliate that handles title, closing and escrow services.
A spokesperson for Rocket Homes told ConsumerAffairs that the "allegations are false and a distortion of reality."
"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," the spokesperson said. "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."
The Jason Mitchell Group didn't immediately respond to ConsumerAffairs's request for comment.