US accuses Rocket Homes of illegal kickbacks in mortgage scheme

(Reuters) -The top U.S. watchdog agency for consumer finance on Monday accused Rocket Homes, a unit of Rocket Companies, and The Jason Mitchell Group of real estate brokerages of an illegal kickback scheme to steer mortgage applications back to Rocket.

According to the Consumer Financial Protection Bureau, Rocket Homes, one of the largest mortgage lenders in the United States, plied the real estate brokerages with referrals and other inducements so that the brokers and agents would steer real estate settlement business back to a Rocket affiliate.

Jason Mitchell allegedly offered "dog bone" awards of $250 gift cards to agents making the most referrals back to favored partners, including Rocket affiliates Amrock and Rocket Mortgage, according to the CFPB.

"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."



Representatives for Rocket Companies and The Jason Mitchell Group did not immediately respond to requests for comment.

Monday's announcement marked the third major action by the CFPB since Friday, following lawsuits against Walmart (NYSE:WMT ) as well as JPMorgan Chase (NYSE:JPM ), Bank of America, and Wells Fargo (NYSE:WFC ) over those banks' alleged mishandling of fraud on peer-to-peer payments.

Source: Investing.com