Real Estate Giant Accused of Kickback Scheme

The Consumer Financial Protection Bureau (CFPB) has accused Rocket Homes, one of the U. S. 's largest mortgage lenders, and The Jason Mitchell Group of a secret kickback scheme. The CFPB claims that Rocket Homes provided real estate brokerages with rewards to encourage them to steer mortgage applications back to Rocket. The scheme involved gift cards worth $250, nicknamed "dog bone" awards, for agents who made the most referrals to favored partners like Amrock and Rocket Mortgage. This practice, according to the CFPB, discouraged homebuyers from shopping around for the best deals, ultimately driving up housing costs. The CFPB's Director, Rohit Chopra, stated that such illegal actions block competition and make homeownership even harder for many people. Both Rocket Homes and The Jason Mitchell Group have yet to comment on the allegations.

This isn't the first time the CFPB has taken action. Recently, they sued Walmart and major banks like JPMorgan Chase, Bank of America, and Wells Fargo over their handling of fraud in peer-to-peer payments.

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