Zillow Class Action Investigation: Alleged Kickbacks and Mortgage Steering Raise Legal Concerns

Shub Johns & Holbrook LLP has launched a class action investigation into Zillow following reports that the company may be violating federal and state real estate laws by providing kickbacks to certain real estate agents.

The Washington-based real estate giant, Zillow Group, Inc., and its subsidiaries (collectively, “Zillow”) have come under scrutiny after reports surfaced alleging that Zillow offers illegal incentives and kickbacks to agents participating in its Premier Agent and Flex programs. These agents allegedly steer home-buying consumers toward Zillow’s in-house mortgage provider, Zillow Home Loans, in exchange for benefits or increased business opportunities.

The Premier Agent and Flex platforms are designed to connect real estate agents with homebuyers using Zillow’s marketplace. However, reports suggest that Zillow may be incentivizing agents to direct new buyers to obtain mortgage pre-approvals through Zillow Home Loans, potentially limiting consumers’ access to competitive loan options.

Many borrowers have described Zillow Home Loans as “limited” and “uncompetitive” compared to traditional lenders. If true, these alleged practices could mislead consumers into securing mortgage agreements through Zillow under the guidance of biased real estate professionals. Consumers may not be aware of these behind-the-scenes incentives, potentially resulting in higher costs or less favorable loan terms.

These allegations may constitute violations of the Real Estate Settlement Procedures Act (RESPA) and the Washington Consumer Protection Act, both of which prohibit undisclosed financial arrangements and deceptive practices in real estate transactions. If proven, Zillow may have unlawfully profited from each home loan transaction arranged through its platform.

Did you purchase a home through Zillow and feel pressured or encouraged to apply for a Zillow Home Loans mortgage? You may be eligible to participate in this investigation. Fill out the form below to share your experience and join the class action investigation today.