Rocket Homes under scrutiny for alleged illicit kickback scheme by regulatory authority
As per the Consumer Financial Protection Bureau, one of the significant mortgage lenders in the USA, Rocket Homes, reportedly bribed real estate brokerages with referrals and incentives. This was done to ensure that these brokerages and agents directed their real estate settlement business towards a Rocket affiliate.
It's claimed that Jason Mitchell presented "dog bone" rewards, worth $250 gift cards, to agents who showed the most referrals towards preferred partners, such as Rocket affiliates Amrock and Rocket Mortgage, as per the CFPB.
CFPB Director Rohit Chopra stated, "Rocket embarked on a kickback scheme that discouraged home-buyers from comparing prices and securing the best deal. In an era where homeownership seems distant for many, companies should not unlawfully hinder competition, thereby escalating the cost of housing."
Rocket Companies and The Jason Mitchell Group representatives did not promptly react to requests for comment.
The announcement on Monday represented the third major initiative by the CFPB since last Friday, following legal actions against Walmart, along with JPMorgan Chase, Bank of America, and Wells Fargo, who allegedly mishandled fraud in peer-to-peer payments.
Rocket Homes' allegedly corrupt practices involved offering incentives to real estate brokerages to steer their business towards Rocket affiliates, such as Amrock and Rocket Mortgage, thereby impacting the overall business landscape.
The Consumer Financial Protection Bureau's actions against companies like Rocket Homes aim to preserve fair competition in the housing market, preventing unlawful schemes that could artificially inflate housing costs.
