Rocket Mortgage and Zillow Are Facing Class Action Lawsuits. Here’s Why That Matters to Homebuyers.
Over the last several years, the real estate and mortgage world has shifted fast. Big tech platforms. National call-center lenders. Referral networks built around clicks, data, and speed.
Now two of the biggest names in housing — Rocket Mortgage and Zillow — are facing class action lawsuits that are forcing an uncomfortable but important conversation.
These cases are still playing out. Allegations are not rulings. But what’s being alleged matters, especially for everyday homebuyers trying to make one of the biggest financial decisions of their lives.
What Is Rocket Mortgage Being Sued For?
In late January 2026, a proposed class action lawsuit was filed against Rocket Companies, including Rocket Mortgage and Rocket Homes.
At the center of the lawsuit is a concept called steering.
The plaintiffs allege Rocket created a system where homebuyers were routed to real estate agents through Rocket’s referral network, and that those agents were financially incentivized to guide buyers toward Rocket Mortgage rather than encouraging them to shop and compare lenders.
The lawsuit claims this structure may violate the Real Estate Settlement Procedures Act (RESPA), a federal law designed to protect consumers from hidden referral arrangements and practices that limit competition.
Rocket has denied the allegations and maintains that buyers are always free to choose their lender. The case will ultimately be decided in court.
Why Zillow Is Facing Similar Lawsuits
Zillow is also dealing with multiple lawsuits related to how its platform connects buyers, agents, and mortgage services.
The allegations focus on whether Zillow’s agent programs and lead systems encouraged or pressured agents to route buyers toward Zillow Home Loans instead of allowing truly open lender comparison.
Plaintiffs argue that access to leads, visibility, and placement on Zillow may have been tied to participation in Zillow’s mortgage ecosystem, which could limit consumer choice.
Zillow denies these claims and says buyers remain in control of their decisions.
Again, these are allegations, not conclusions. But the similarities to the Rocket case are hard to ignore.
Why the Law Firm Behind These Cases Matters
There’s an important connection many people haven’t noticed.
The law firm bringing the lawsuits against Rocket Mortgage and Zillow is Hagens Berman Sobol Shapiro.
That’s the same firm that helped lead the high-profile antitrust case against the National Association of Realtors a few years ago. That case challenged long-standing commission practices and resulted in massive settlements and nationwide changes across the real estate industry.
That doesn’t mean these new cases will end the same way.
But it does matter that the same firm is consistently targeting situations where large platforms control access to consumers, financial incentives aren’t always obvious, and competition may be limited behind the scenes.
This isn’t random litigation. It’s part of a broader push to examine how power, data, and money flow through the housing system.
Why This Hits Close to Home in Northwest Indiana
This matters everywhere, but it matters especially here in Northwest Indiana.
Crown Point. Merrillville. Valparaiso. St. John. Schererville. Lowell. Chesterton.
These aren’t one-size-fits-all markets.
Buyers here rely on Indiana-specific down payment assistance programs, local property tax nuances, timing strategies that actually work in our market, and lenders who understand how deals get done locally.
When a national platform controls the search results, the agent referral, and the next step, buyers may believe they’re shopping when in reality they’re being routed.
Local lenders and independent agents don’t survive by steering people into one product. They survive on reputation, referrals, and long-term trust. That difference matters when you’re making a decision that affects your finances for the next 15 to 30 years.
Why Shopping Local Still Matters
Technology has its place. Online tools can be helpful.
But convenience should never replace comparison.
Shopping local means working with professionals who are not tied to one lender, one platform, or one referral funnel. It means comparing real numbers, understanding incentives, and getting advice based on your goals, not a corporate system.
A mortgage isn’t a click. It’s a long-term commitment.
And no algorithm cares about your financial future the way a trusted local professional does.
Final Thought
The lawsuits involving Rocket Mortgage and Zillow aren’t about whether technology belongs in real estate. It does.
They’re about whether choice and transparency stay at the center of the homebuying process.
As a homebuyer, your best protection is still the same as it’s always been. Ask questions. Compare options. Work with people who are accountable to you, not to a referral system.
That’s how you protect yourself. And that’s why shopping local still matters.
Sources and Further Reading
• Hagens Berman Sobol Shapiro press release
Homebuyers Sue Rocket Mortgage and Affiliated Companies Alleging Illegal Steering Practices
https://www.hbsslaw.com/press/rocket-homebuyer-class-action/
• RISMedia
Rocket Companies Faces Class Action Suit Over Alleged Steering
https://www.rismedia.com/2026/01/26/rocket-companies-faces-class-action-suit-over-alleged-steering/
• HousingWire
Rocket Mortgage Hit With Steering Lawsuit
https://www.housingwire.com/articles/rocket-mortgage-steering-lawsuit/
• Inman News
Zillow Sued Over Alleged Mortgage Steering and Lead Practices
https://www.inman.com/2026/01/20/washington-agent-sues-zillow-for-alleged-mortgage-steering/
• HousingWire
Zillow Faces Lawsuits Over Preferred Agent and Mortgage Programs
https://www.housingwire.com/articles/zillow-lawsuit-preferred-agent/
• Reuters
Zillow Hit With Class Action Over Alleged Mortgage Steering
https://www.reuters.com/legal/
• Background on NAR Antitrust Litigation
https://www.hbsslaw.com/cases/real-estate-commission-litigation/
