"In another practice cited in the suit, borrowers who obtained a preapproval letter from Rocket Mortgage were allegedly directed to Rocket Homes and matched with a real estate agent. If the borrower ultimately purchased a home using that agent, the brokerage paid Rocket Homes a referral fee typically around 35% for services the lawsuit claims Rocket Homes did not actually provide."
"The coercion of the agents is what makes this case unique; they are arguing that Rocket's strategy was essentially pay-to-play, said James Brody, managing partner at Brody Gapp LLP. The most damaging aspect of this complaint is the erosion of the fiduciary wall a homebuyer trusts that their agent is an independent adviser, and if that adviser is incentivized to prioritize one lender's loan volume over the borrower's financial interests, that relationship is arguably compromised."
"Plaintiffs Barbara Waller, Elizabeth Johnson and Randel Clark bought homes between 2021 and 2023 through real estate agents whom they claim did not offer options or pushed them to use Rocket Mortgage or Amrock, the group's title company. They are represented by Hagens Berman, a consumer protection law firm that was also involved in similar litigation against Zillow and the National Association of Realtors."
Borrowers who obtained preapproval letters from Rocket Mortgage were allegedly directed to Rocket Homes and matched with real estate agents. If a borrower purchased a home using that agent, the brokerage paid Rocket Homes a referral fee typically around 35% for services that were not actually provided. Agents were allegedly coerced into steering clients, creating a pay-to-play incentive. Plaintiffs claim erosion of the fiduciary wall and that agents pushed Rocket Mortgage or Amrock without offering options. Plaintiffs are represented by Hagens Berman. Rocket stated responses will appear in dispositive motions. Legal experts note challenges including class certification and sufficiency review by a judge.
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