HousingWire Daily Jason Mitchell on being sued by the CFPB and the larger implications of the case
Jan 28, 2025
Jason Mitchell, founder of the Jason Mitchell Group, discusses his ongoing legal battle with the CFPB over RESPA violations. He sheds light on the emotional toll of the lawsuit and underscores the importance of ethical practices in real estate. Trust is pivotal in referral relationships, as genuine recommendations must stem from quality assurance. Mitchell also addresses the impact of regulatory bodies on consumer protection and stresses the need for transparency in the mortgage process, reflecting on his commitment to integrity amidst adversity.
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CFPB Lawsuit
- The CFPB sued Jason Mitchell's group (JMG) and Rocket Mortgage right before Christmas.
- Mitchell chose to fight the lawsuit, feeling they're defending the entire housing industry.
Quid Pro Quo Allegation
- The CFPB claims a quid pro quo between Rocket Mortgage and JMG, alleging steering of clients.
- Mitchell argues this is illogical given Rocket Mortgage's size relative to JMG and standard industry practices.
Gift Card Allegation
- The CFPB alleges JMG gave agents $250 gift cards for each Rocket Mortgage referral, which Mitchell denies.
- Data shows only 3-4% of JMG's originated buyers closed with Rocket, contradicting steering claims.