Defense and Compliance Attorneys
Secure Complaint RMAI Certified BrokerSource: site
The Consumer Financial Protection Bureau on Thursday dropped a lawsuit against Rocket Homes filed under the previous administration’s director, Rohit Chopra.
The lawsuit had accused the company of providing kickbacks to real estate brokers and agents who directed homebuyers to Rocket Mortgage for loans, allegations that Rocket Homes denied.
The notice of dismissal filed in U.S. District Court for the Eastern District of Michigan stated: “Plaintiff, Consumer Financial Protection Bureau, dismisses this action, with prejudice, against all Defendants.”
The lawsuit had also named Jason Mitchell and several individual real estate brokerage firms linked to Mitchell’s company, JMG Holding Partners LLC, which operates as The Jason Mitchell Group in Scottsdale, Arizona.
“It is good to see the truth come to light,” Rocket Homes said in a statement. “This case was a misrepresentation of the facts, as we have said from the day the suit was filed. It was an empty claim brought forth by former CFPB director Chopra for the sole purpose of seeing his name in headlines during the final days in public office. Rocket Homes has always connected buyers with top-performing agents based only on objective criteria like how well they helped homebuyers achieve their dream of homeownership. We are proud to put this matter behind us and remain focused on our mission to help everyone home.”
The Consumer Financial Protection Bureau also dismissed cases against other entities: Capital One, Vanderbilt Mortgage & Finance, and a loan servicer, the Pennsylvania Higher Education Assistance Agency, according to CNBC.
The lawsuit dismissals follow President Donald Trump’s firing of Chopra and appointment of Russell Vought, director of the Office of Management and Budget, as acting CFPB director on Jan. 31. The bureau is in flux as the Trump administration attempts to dismantle it. Experts have said they expect oversight of financial institutions to continue, although what that will look like is in question.
In addition to replacing the CFPB’s director, Trump’s administration has issued a stop-work order at the agency and dismissed some employees. A district judge has temporarily blocked the White House from firing staff or deleting agency data, pending a March 3 hearing on a lawsuit filed by a union representing CFPB workers.
The dismissal also comes on the same day that Rocket Companies is expected to provide its earnings report for the fourth quarter of 2024.
cwilliams@detroitnews.com
@CWilliams_DN
Upcoming Events
Defense and Compliance Attorneys