CFPB Sues Rocket Homes, Alleging Illegal Kickback Scheme
Rocket Homes said Monday (Dec. 23) that it “will not rest” until it sees the dismissal of Consumer Financial Protection Bureau (CFPB) allegations that were announced Monday.
The CFPB sued Rocket Homes, Jason Mitchell and Mitchell’s real estate brokerage firm, which does business as the Jason Mitchell Group, alleging they each played a role in an illegal kickback scheme.
The regulator said in a Monday (Dec. 23) press release that its complaint alleges that the scheme provided incentives to real estate brokers and agents to steer prospective borrowers to Rocket Mortgage and Amrock, which, like Rocket Homes, are affiliates of Rocket Companies.
“Rocket engaged in a kickback scheme that discouraged homebuyers from comparison shopping and getting the best deal,” CFPB Director Rohit Chopra said in the release. “At a time when homeownership feels out of reach for so many, companies should not illegally block competition in ways that drive up the cost of housing.”
Reached by PYMNTS, Rocket Homes said in an emailed statement that it “will not rest until these baseless allegations are fully dismissed.”
The company denied the CFPB’s allegations that it penalized real estate brokers or agents and that homebuyers paid more when working with Rocket Homes. It added that one-third of consumers who had a loan application in progress with Rocket Mortgage before contacting Rocket Homes, chose to close with a different lender.
“Director Chopra’s transparent ploy to bolster his political agenda before the changing of administrations is a reckless and shocking misuse of public resources,” Rocket Homes said in the statement. “This flimsy lawsuit is just the latest in a tidal wave of legal actions by a desperate Chopra hungry for headlines.”
Jason Mitchell Group did not immediately reply to PYMNTS’ request for comment.
The CFPB said in the Monday press release that its lawsuit seeks to stop the companies’ alleged illegal conduct, get redress for harmed borrowers and impose a civil money penalty that would be paid into the regulator’s victims relief fund.
The regulator has made a flurry of announcements and proposals in the weeks leading up to — and after — the November election, PYMNTS reported Thursday (Dec. 19).
In two other recent moves, the CFPB said Monday that it is suing Walmart and Branch over accounts for gig economy drivers and said Friday (Dec. 20) that it is suing Zelle operator Early Warning Services and three of its owner banks, alleging that they failed to protect consumers from “widespread fraud.”
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