Rocket Homes Accused of Illegal Kickback Scheme by Consumer Watchdog
The Consumer Financial Protection Bureau (CFPB) has accused Rocket Homes, a subsidiary of Rocket Companies, and The Jason Mitchell Group real estate brokerages of engaging in an illegal kickback scheme to direct mortgage applications to Rocket affiliates.
According to the CFPB, Rocket Homes, one of the largest mortgage lenders in the U.S., provided real estate brokerages with various incentives, including referrals, to encourage them to steer business back to Rocket’s affiliates, such as Amrock and Rocket Mortgage.
The Jason Mitchell Group allegedly incentivized real estate agents with $250 gift cards, known as “dog bone” awards, for referring clients to Rocket’s partners, the CFPB claims.
CFPB Director Rohit Chopra criticized the scheme, stating, “Rocket engaged in a kickback arrangement that discouraged homebuyers from shopping around for the best deal. At a time when homeownership is out of reach for many, these illegal practices only drive up housing costs.”
Representatives for Rocket Companies and The Jason Mitchell Group have not yet responded to requests for comment.
This action marks the third major move by the CFPB in recent days, following lawsuits filed against Walmart and several major banks, including JPMorgan Chase, Bank of America, and Wells Fargo, over their handling of fraud related to peer-to-peer payments.
