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n Nov. 7, a federal court in Seattle heard a class‑action complaint alleging that Zillow’s Premier Agent and Flex programs were used to funnel homebuyers into Zillow Home Loans, violating RESPA, the Washington Consumer Protection Act and fiduciary duty. The suit claims Zillow created a “kickback” system: agents who routed clients to its mortgage arm earned higher‑quality leads, while those who didn’t risk losing access to the lucrative Flex program. Buyers, unaware of the agents’ incentives, were directed to Zillow Home Loans, which the complaint says offers limited, often uncompetitive products. The filing ties the conduct to Zillow’s “housing super app” strategy, outlined in its February 2025 investor deck, aimed at dominating every stage of the home‑buying journey on one platform.

    Zillow has faced similar allegations before. In 2023 it settled a RESPA‑related class action over a prior mortgage co‑marketing program; the CFPB later closed its investigation without enforcement. The current suit, brought by Tousley Brain Stephens PLLC and DiCello Levitt LLP, seeks class certification for all U.S. consumers who received Zillow Home Loans referrals from participating agents. Plaintiff Araba Armstrong, a first‑time buyer from Anchorage, claims she was led to obtain a mortgage pre‑approval and loan from Zillow Home Loans without being informed of the agents’ quotas or incentives.

    The complaint echoes a September suit by Hagens Berman and Cohen Milstein, which accuses Zillow of inflating home‑buying costs through Flex by charging agents up to 40 % of their commission and keeping overall commissions high. Zillow denies the allegations, stating the complaint misrepresents its operations and pledges to defend its practices vigorously.