Dan Gilbert
A federal lawsuit that alleges hundreds of thousands of homebuyers overpaid because Detroit-based Rocket Companies' mortgage unit colluded with real estate agents is raising questions about the effectiveness of federal watchdogs under President Donald Trump, the Detroit News reports.
The suit, filed by three homeowners from Georgia, North Carolina, and Pennsylvania, accuses Rocket of being involved in “a perpetual loop of illegal referrals and kickbacks” at the expense of homebuyers.
“That Rocket sought to capitalize on this by pressuring homebuyers into bad loans is not only illegal, but immoral,” plaintiffs' attorney Steve Berman said in a statement.
The News writes:
The lawsuit alleges that Rocket gave leads on prospective buyers to real estate agents. In exchange, agents were expected to push those buyers to use Rocket financing "even though Rocket Mortgage’s terms are disadvantageous to the clients," the suit claims.
Some say the federal Consumer Financial Protection Bureau has eased enforcement under President Donald Trump, allowing the alleged practice.
Rocket tells The News that the lawsuit is "an empty lawsuit filed by a typical, predatory plaintiff law firm," adding: "We have a long and successful history of defeating these nonsensical claims brought on by unscrupulous parties posing as righteous defenders of hard-working Americans."
