CFPB Accuses Rocket Homes Of Illegal Kickback Scheme

The Consumer Financial Protection Bureau (CFPB) has accused Rocket Homes, a subsidiary of Rocket Companies, and The Jason Mitchell Group real estate brokerages of operating an illegal kickback scheme to channel mortgage applications back to Rocket affiliates, Reuters reported.

The CFPB alleged that Rocket Homes incentivized brokers and agents with referrals and other benefits to ensure real estate settlement business was directed to Rocket-affiliated companies. I Photo: Rocket Companies

The CFPB alleged that Rocket Homes incentivized brokers and agents with referrals and other benefits to ensure real estate settlement business was directed to Rocket-affiliated companies such as Amrock and Rocket Mortgage.

Jason Mitchell reportedly offered $250 “dog bone” gift cards to agents who made the most referrals to favored partners, including Rocket affiliates.

“Rocket engaged in a kickback scheme that discouraged home-buyers from comparison shopping and getting the best deal,” CFPB Director Rohit Chopra said in a statement.

“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.”

This announcement is the CFPB’s third major enforcement action since Friday, following lawsuits against Walmart and several major banks over alleged mishandling of peer-to-peer payment fraud.