Rocket Companies Accused of Coercing Clients into Bad Loans
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: Businesswire
- Class Action Filed: On January 26, 2026, a class-action lawsuit was filed by Hagens Berman against Rocket Companies, accusing them of coercing real estate agents to steer clients to Rocket Mortgage, undermining homebuyers' interests and highlighting the potential immorality of their business practices.
- Improper Steering Allegations: The lawsuit claims that Rocket incentivized real estate agents by providing leads, compelling them to direct clients to Rocket Mortgage, which violated agents' fiduciary duties and resulted in clients facing disadvantageous loan terms.
- Revenue Growth Amid Misconduct: According to the lawsuit, Rocket reported $1.78 billion in revenue for Q3 2025, a 148% year-over-year increase, indicating the success of its improper steering program, albeit at the expense of consumer welfare.
- Legal Consequences and Damages Sought: The lawsuit seeks treble damages and injunctive relief against Rocket's steering practices, emphasizing the critical role of consumer protection laws in the real estate market.
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Analyst Views on RKT
Wall Street analysts forecast RKT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RKT is 22.18 USD with a low forecast of 18.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
5 Buy
6 Hold
0 Sell
Moderate Buy
Current: 20.760
Low
18.00
Averages
22.18
High
25.00
Current: 20.760
Low
18.00
Averages
22.18
High
25.00
About RKT
Rocket Companies, Inc. is a fintech platform including mortgage, real estate and personal finance businesses: Rocket Mortgage, Redfin, Mr. Cooper, Rocket Homes, Rocket Close, Rocket Money, and Rocket Loans. The Company's full suite of products empowers its clients across financial wellness, personal loans, home search, mortgage finance, title and closing. Through these businesses, it delivers client solutions leveraging its Rocket platform. It operates in two segments: Direct to Consumer and Partner Network. In the Direct to Consumer segment, clients have the ability to interact with Rocket Mortgage digitally and/or with the Company's mortgage bankers. It provides client service and leverages its brand to strengthen its wholesale relationships, through Rocket Pro, as well as enterprise partnerships, both driving growth in its Partner Network segment. The Company's capabilities span the entirety of homeownership, such as home search, financing, title, closing and servicing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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