Rocket Companies shares fall 6.26% after-hours after class-action lawsuit alleges illegal loan steering to Rocket Mortgage.

Rocket Companies fell 6.26% in after-hours trading following a consumer class-action lawsuit alleging illegal steering of homebuyers to Rocket Mortgage with disadvantageous loan terms. The suit, which claims violations of fair lending standards, directly targets the company’s core digital mortgage origination model, raising regulatory and reputational risks. This legal challenge compounds existing concerns about Rocket’s profitability and market conditions, as recent weak housing market reports from Redfin highlighted prolonged selling times and subdued demand. The lawsuit’s timing and focus on operational integrity align with the stock’s sharp decline, reflecting investor anxiety over potential penalties, regulatory scrutiny, and erosion of consumer trust in a competitive sector.