"The lawsuit alleges that the portal tricks consumers into using agents affiliated with Zillow through its Flex and Premier Agent programs, resulting in inflated home purchase prices. In an amended complaint filed in mid-November, Taylor also alleged that Zillow violated the Racketeer Influenced and Corrupt Organizations (RICO) Act by pushing homebuyers to apply to more costly loans that do not serve their best interests."
"Filed in early November, the Armstrong suit claims that Zillow used illegal kickbacks to bolster the rapid growth of its ZHL mortgage business. According to the complaint, Zillow pressures agents in its Premier Agent and Flex lead programs to steer buyers to Zillow Home Loans for their purchase mortgage pre-approval. Allegedly, agents who sent more clients to Zillow's mortgage arm for their pre-approvals received extra or higher-quality leads in exchange."
Two lawsuits filed in U.S. District Court in Seattle allege RESPA violations by Zillow. The Taylor case filed mid-September alleges the portal tricks consumers into using agents affiliated with Zillow through Flex and Premier Agent programs, inflating home purchase prices. A mid-November amended complaint adds RICO allegations that Zillow pushed buyers toward more costly loans, and includes testimony from 12 witnesses claiming Zillow personnel instructed Flex agents to meet Zillow Home Loans quotas and that loan officers misrepresented or omitted true closing costs, causing buyers to pay excessive costs or lose homes. The Armstrong suit filed in early November alleges illegal kickbacks tied to steering agents toward Zillow Home Loans for pre-approvals, with agents who sent more clients receiving extra or higher-quality leads and Flex agents facing removal for insufficient referrals.
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