WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) recently initiated legal action against Rocket Homes Real Estate, LLC, The Jason Mitchell Group, and its founder Jason Mitchell over allegations of operating an illegal kickback scheme aimed at steering homebuyers to Rocket Mortgage, LLC. The lawsuit also targets affiliated real estate brokerages under The Mitchell Group, which operates across 41 states and the District of Columbia.
The CFPB accuses Rocket Homes of providing incentives to real estate brokers and agents in exchange for referring clients to Rocket Mortgage and its affiliate, Amrock, which handles title and escrow services. These practices allegedly violated the Real Estate Settlement Procedures Act by discouraging homebuyers from seeking competitive loan options and withholding information about alternative programs that could save buyers significant costs, such as down payment assistance.
According to the CFPB, the scheme involved offering “homebuyer referrals” and prioritized future referrals as rewards for steering clients toward Rocket’s services. Additionally, The Mitchell Group was implicated for distributing $250 “Dog Bone” awards to agents generating the most referrals. The CFPB claims agents employed coercive tactics, including insinuating potential settlement failures, to dissuade clients from exploring competing options.
“Rocket engaged in a kickback scheme that discouraged homebuyers from comparison shopping and getting the best deal,” said CFPB Director Rohit Chopra.
The CFPB’s lawsuit seeks an injunction to halt these practices, financial redress for impacted homebuyers, and a civil penalty to be deposited in the CFPB’s victims relief fund. The outcome of the enforcement action could have significant implications for consumer rights within the mortgage and real estate industries.
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