Rocket lays out its steering defense in RESPA lawsuit

Rocket Cos. is laying out its defense against steering accusations from consumers, claims which stem from a regulator's yearslong probe.

Three plaintiffs sued the lender in January, reviving a Real Estate Settlement Procedures Act complaint raised by the Consumer Financial Protection Bureau. The lawsuit accuses the company of steering customers on its Rocket Homes referral network to use its mortgage arm, and of compelling agents to pay 35% of their commissions to Rocket Homes as a kickback.

The allegations stem from the CFPB's four-year investigation into Rocket, which culminated with its lawsuit in December 2024. The Trump administration dropped that case early last year, part of the bureau's larger pullback from enforcement activity. 

The new suit suggests Rocket bought Redfin last year to bring its steering behavior in-house. Rocket has denied wrongdoing, and has countered the accusations in back-and-forth filings with plaintiffs this spring in a Michigan federal court. 

In a 16-page reply this week, Rocket says its conduct is protected by RESPA's cooperative brokerage safe harbor. The company also claims its actions did not involve an exchange of things of value, such as monetary payments which were at the center of other steering cases.

Neither attorneys for the parties nor a spokesperson for Rocket responded to requests for comment this week.

Rocket's answer to steering accusations

According to plaintiffs, Rocket violated RESPA beginning in 2019 by sending leads to real estate agents only if they steered clients to Rocket Mortgage. Plaintiffs citing the CFPB's earlier claims said an "estimated 50% of all the penalties Rocket Homes assessed on real estate agents" were for violations of their purported steering agreements. 

Such activity resulted in more than 10,000 additional referrals sent to Rocket Mortgage in 2019 compared to the prior year, the complaint read.

Rocket refuted those points, stating that the language in its "preserve and protect" policy simply required agents to avoid interfering with a client's pre-existing relationship with a lender. Attorneys for Rocket cited the safe harbor, in arguing that nothing in anti-kickback rules for originators prohibits payments, or referral payments, between real estate agents (Rocket Homes) and third-party brokers.

Plaintiffs contested that argument in an earlier filing last month. 

"In seeking safe harbor succor, defendants pretend that Rocket Mortgage is not involved in the steering operation, which is nonsense," wrote attorneys for the plaintiffs. 

The sides also dispute standing. While Rocket argues the plaintiffs haven't pled specific injuries, the purported victims say the fact of overpayment, in being steered to higher-cost loans, is sufficient. Rocket is also contesting the statute of limitations, as they suggest the claims should be time-barred from the time of the alleged referrals. 

Rocket is one of several large lenders fighting steering claims, although the alleged RESPA violations against each firm vary. Lawsuits against CrossCountry Mortgage, Loandepot and United Wholesale Mortgage remain pending in various courthouses.