Originally filed in December 2024, when the CFPB was still under the purview of Rohit Chopra, the suit alleges that between 2019 and 2024, real-estate brokerage firm Rocket Homes incentivized real estate brokers and agents with referrals and priority for future referrals in exchange for steering clients toward mortgage lender Rocket Mortgage and settlement firm Amrock, which are also under the umbrella of Detroit-based Rocket Companies.
The Jason Mitchell Group and its founder, Jason Mitchell, were accused of engaging in kickbacks by referring thousands of clients to Rocket’s companies. The lawsuit claims Mitchell awarded $250 “Dog Bone” gift cards to agents who made the most referrals to his preferred partners, including Rocket Mortgage.
The CFPB at the time also alleged that Rocket restricted brokers and agents from sharing competing lenders’ information, including details about down-payment assistance programs. At The Jason Mitchell Group, agents were allegedly trained to suggest transactions could fail if clients shopped around for other mortgage options, the CFPB previously said.
Rocket and JMG both strongly denied the allegations. Mitchell claimed that the CFPB spent three years engaging in back-and-forth discussions before offering a $200,000 settlement on the charges, which he refused.
After the lawsuit was filed in December, Chopra said the “kickback scheme” discouraged homebuyers from comparison shopping and getting the best deal.
“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,” he said.
Additionally, the CFPB claimed that Rocket restricted brokers and agents from sharing competing lenders’ information, including details about down-payment assistance programs. At The Jason Mitchell Group, agents were supposedly trained to suggest transactions could fail if clients shopped around for other mortgage options.
The CFPB, under the Trump administration, is expected to take a very different approach to enforcement and supervision of housing companies. Staff have been instructed not to supervise, regulate or engage in active litigation for the time being.
President Trump’s nominee to lead the CFPB, Jonathan McKernan, testified in front of the Senate Banking Committee on Thursday that the CFPB has been a rogue agency under Democrats that has “pushed beyond the limits of statutory authority.
“It has seized opportunities to expand its jurisdiction and power. It has offended our basic notions of fairness and due process when it has regulated by enforcement,” he said. “And it has harmed consumers through higher prices and reduced choice when it has failed to strike an appropriate balance between costs and benefits in prescribing new regulations. Even if you don’t agree with that view, it’s clear that the CFPB suffers from a crisis of legitimacy. This must be corrected if the CFPB is to reliably do what it’s supposed to do—look out for the American consumer.”
In a post on LinkedIn on Thursday, Mitchell wrote “HOT OFF THE PRESS. CFPB DISMISSES CASE AGAINST JMG WITH PREJUDICE!!!!! LET’S GO!!”
The defendants filed a motion to dismiss the suit last Friday.
First Time Home Buyer FAQs - Via HousingWire.com
