Overview
- Homebuyer Araba Armstrong filed a federal lawsuit in Seattle seeking nationwide class status, damages, and an injunction over alleged illegal referrals to Zillow Home Loans.
- The latest filings claim Zillow used its Premier Agent and Flex programs to pressure agents with quotas, leaderboards, and control of lead flow to drive pre‑approvals through its lender.
- One complaint cites a Preferred Agent Program guideline requiring at least a 10% Zillow Home Loans pre‑approval rate, with noncompliant agents at risk of being disengaged.
- Plaintiffs allege these practices constitute prohibited kickbacks under RESPA and aided breaches of agents’ fiduciary duties, resulting in biased advice and higher borrowing costs.
- Zillow says it prioritizes transparency and consumer choice and operates within the law, as the suits arrive alongside rapid mortgage growth to about $2.3 billion in Q3 2025 and after a 2023 settlement and a CFPB inquiry that ended without enforcement.