On December 23, 2024, the CFPB sued Rocked Homes to stop them from providing incentives to real estate brokers and agents in exchange for steering homebuyers to Rocket Mortgage, LLC for loans. The CFPB also sued Jason Mitchell, his real estate brokerage firm, JMG Holding Partners LLC, and several real estate brokerage companies for their role in the unlawful scheme.
The CFPB reported that Rocket Homes pressured brokers not to inform clients about other valuable options, like down payment assistance programs, which could save homebuyers thousands. The Bureau’s investigation also found that Rocket Homes gave referrals and other incentives to real estate brokerages under an agreement or understanding that the real estate brokers and agents would refer real estate settlement business to Rocket Mortgage and a separate Rocket affiliate called Amrock, which handles title, closing, and escrow services. In addition, The Mitchell Group referred thousands of clients to Rocket Mortgage and Amrock, offering $250 gift cards to Mitchell Group agents who made the most referrals to The Mitchell Group’s favored partners, including Rocket Mortgage and Amrock.
The CFPB alleges that Rocket Homes violated the Real Estate Settlement Procedures Act by providing kickbacks in exchange for referrals and requiring brokers and agents to steer consumers toward Rocket Mortgage. The CFPB’s lawsuit against Rocket Homes, The Mitchell Group, and Jason Mitchell seeks a stop to alleged unlawful conduct, redress for harmed borrowers, and the imposition of a civil money penalty.
Read the CFPB’s press release here.
The full complaint can be found here.