Federal regulators lawsuit A complaint filed by the Consumer Financial Protection Bureau (CFPB) on Monday accused Rockett Homes Real Estate and Jason Mitchell Group (JMG) of directing homebuyers to certain mortgage loans and payment services. Alleged an illegal referral scheme.
Rocket Homes allegedly provided referrals and incentives to real estate agents in exchange for referring customers to Rocket Mortgage for mortgages and to Amrock for title and closing services. All three companies are subsidiaries of Detroit-based Rocket Companies, Inc.
CFPB Director Rohit Chopra said, “Rocket engaged in a kickback system that prevented homebuyers from comparing and getting the best deals.” “At a time when homeownership feels out of reach for many, companies should not illegally block competition in ways that drive up home prices.”
The lawsuit also names Jason Mitchell Group, a Scottsdale, Ariz.-based company with operations in 41 states and Washington, D.C., as well as 45 of its affiliated companies and CEO Jason Mitchell. The CFPB alleges that the group received valuable compensation for referring thousands of customers to Rocket Mortgage and Amrock over a five-year period from 2019 to 2024.
The CFPB alleges that Rocket Homes required brokers to accept referrals in order to “preserve and protect” their relationships with Rocket Mortgage by steering customers away from competing lenders. Brokers were also prevented from informing their borrower customers about alternatives that Rocket Mortgage did not offer, such as down payment assistance programs, according to the complaint.
The complaint alleges that Mitchell encouraged agents to receive a $250 “dog bone” gift card award for making the most referrals to Lockett and Amrock.
Additionally, “Mitchell Group encouraged real estate brokers and a network of real estate brokers to engage in coercive tactics to get consumers to use Rocket Mortgage for home loans. “If buyers wanted to compare Rocket Mortgage’s competitors, they were trained to suggest that they might not be able to settle a home,” the complaint alleges.
Federal regulators say the practice violates the Real Estate Settlement Procedures Act (RESPA) and Regulation X, which prohibits giving or receiving gifts or financial kickbacks in exchange for business referrals.
According to the complaint, the CFPB is seeking an undisclosed civil penalty, consumer redress, and an end to the illegal violations of RESPA.
Rockett Holmes pushed back against the CFPB’s lawsuit in a lengthy statement emailed to RIS Media on Monday.
“The CFPB’s claims are false and a distortion of reality. The accusation that homebuyers paid more when working with Rocket Homes is a lie,” the statement said. . “Additionally, the idea that Rocket Homes penalized real estate brokers and real estate agents who helped customers compare interest rates and select the best lender is also a lie.
“The facts are clear: Our data shows that before contacting Rocket Homes, one-third of consumers who had already applied for a loan with Rocket Mortgage chose to work with another lender. This proves that Rocket Homes is committed to helping homebuyers make the best decision for their needs. has always focused on connecting buyers with high-performing agents based on measurable success metrics.
“Secretary Chopra’s blatant ploy to shore up his political agenda ahead of a change in government is a reckless and shocking misuse of public resources. This flimsy lawsuit is a desperate, headline-hungry It’s just the latest in a long line of lawsuits brought by Mr. Chopra.
“Rocket Homes will not rest until these baseless allegations are completely dismissed and the CFPB shifts its focus to real issues that truly impact consumers.”
Jason Mitchell late Monday There was also backlash for posting the video on LinkedIn.. A comment on his post reads:Earlier today, the CFPB filed a lawsuit against JMG for making false claims regarding steering. Last Friday, after three years of back and forth, I received an offer from the CFPB to pay a 200,000 yen settlement and move on. I could have easily chosen that path. But the “terms” of the consent order are an admission (to us) that simply is not true. I found myself saying, should I put this behind me or should I stand up and fight for what is right? In this case, JMG is being used as a pawn, so I choose to stand up and fight. So we prove our point and move on from there. It’s not an easy road, but to be honest, the easy road was wrong. Even if the easy path is easy, you must stand up when you know you are right. ”
