Redfin Owner Faces Class Action Over Alleged Mortgage Steering

Rocket Companies, the owner of US real estate marketplace and brokerage Redfin, has been hit with a class-action lawsuit, accusing the Detroit-based group of steering homebuyers towards its own mortgage products and inflating home prices in the process.

The case was filed last week in the US District Court for the Eastern District of Michigan and targets Rocket Companies alongside affiliates Rocket Mortgage, Amrock and Rocket Homes Real Estate. The plaintiffs are represented by Hagens Berman, the consumer law firm that has previously pursued high-profile cases against Zillow and the National Association of Realtors.

Rocket is one of the largest mortgage originators in the US and operates an integrated housing model that combines lending, title, and real estate lead generation. In 2025, the group acquired Redfin, folding the brokerage into a broader ecosystem designed to capture demand across the transaction funnel, from search to financing.

The lawsuit alleges that Rocket used this structure to pressure buyers into using Rocket Mortgage, even when alternative lenders may have offered more favourable terms. According to the complaint, Rocket Homes operated a large referral network in which partner agents paid referral fees of up to 35% and were expected to direct clients towards Rocket’s loan products.

Hagens Berman claims this practice violated the Real Estate Settlement Procedures Act, arguing that consumers were denied fair choice and that agents breached fiduciary duties by prioritising referrals over client outcomes. The suit estimates that hundreds of thousands of buyers may have been affected.

The case echoes a recent lawsuit aimed at Zillow’s mortgage operation, which similarly focused on allegations that portal-led housing ecosystems distort competition by tying traffic, agents and financing into closed loops. In both cases, plaintiffs argue that vertical integration, while marketed as consumer convenience, can create incentives that undermine price transparency.

Rocket has strongly denied the allegations. In a statement, the company said the claims are “a complete retread” of a previous CFPB case that was dismissed, and insisted it operates within the law.

The lawsuit points to Rocket’s third-quarter 2025 results, where revenue hit $1.78 billion, up 148% year on year, as evidence that the disputed practices materially contributed to growth.