New Insider Allegations Deepen Steering Case Against Zillow Home Loans

An amended complaint filed on 19 November 2025 has added fresh allegations to the lawsuit, filed last week, accusing Zillow of steering homebuyers toward Zillow Home Loans (ZHL). The update draws on information from 12 current and former agents and loan officers employed by Zillow.

The filing claims Zillow used internal quotas and incentives to push agents to prioritise ZHL referrals. Witnesses say this created pressure to “burn and churn” clients, select only the most qualified borrowers to obscure loan officer inexperience, and direct buyers toward loan products that may have been more costly.

The amended lawsuit outlines several alleged practices, including:

• Zillow used in-person visits to brokerage offices to instruct Flex agents on meeting ZHL referral targets instead of leaving a paper trail.
• Misrepresenting or omitting closing-cost information, leaving some buyers with higher costs or failed transactions.
• Promoting inexperienced Flex agents as “Top Agents” based purely on programme participation.
• Requiring agents to use “Follow-Up Boss,” which allegedly allowed Zillow to monitor communications and identify agents recommending other lenders.

The complaint now includes RICO claims (related to the Racketeer Influenced and Corrupt Organisations Act). It alleges Zillow and several brokerage partners coordinated to direct buyers to Flex agents and steer them into using ZHL. Plaintiffs say this violated RESPA and agents’ fiduciary duties.

Leading US portal operator Zillow is under fire from all sides and is facing six major lawsuits.