Hagens Berman: Twelve Agents and Loan Officers Confirm “Deceptive” Zillow Home Loan Practices in Expanded Lawsuit Alleging Brokerage Conspiracy

One dozen current and former agents and loan officers divulge insider information, revealing a scheme by Zillow to make unlawful commissions and loan profits in amended class action

SEATTLE--(BUSINESS WIRE)--One dozen current and former loan officers and real estate agents divulged inside information about Zillow Inc.’s allegedly “deceptive” practices and policies in an amended lawsuit accusing Zillow of conspiring with real estate brokerage firms, according to Hagens Berman attorneys representing homebuyers.

The Nov. 19, 2025 filing reveals new, deeper details into Zillow’s alleged steering practices, as well as internal information including Zillow’s incentivizing of agents to “burn and churn” through clients, to cherry-pick borrowers to intentionally conceal loan officers’ inexperience, and to use an internal tool, “Follow-Up Boss,” to eavesdrop on client communications and to censor agents from recommending competing loan providers.

The lawsuit also details claims related to Zillow’s alleged practice of steering, which involves pushing loan applicants to apply for more costly loans that do not serve their best interests, corroborated by anonymous witnesses from inside Zillow’s operations. Attorneys say this, along with Zillow’s other allegedly anticompetitive practices in collusion with real estate brokerages – Works Industries LLC, GK Properties, the Frano Team and other unnamed firms – amounts to violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act.

The complaint outlines experiences of named plaintiffs from across the country including California, Connecticut, Florida, Georgia, Michigan, Nevada, North Carolina, Oregon, Virginia and Washington. If you used a Zillow agent to buy your home, scheduled a home tour through Zillow.com and/or used Zillow Home loans, find out your rights.

“Twelve current and former agents and loan officers have bravely stepped forward to help our clients build a comprehensive case against Zillow, and with their added information, we believe this lawsuit has the potential to bring major changes to Zillow’s policies and practices,” said Steve Berman, managing partner and co-founder of Hagens Berman. The same firm recently secured more than $1 billion in settlements regarding real estate brokerage fees.

“Our firm first upended the real estate industry in bringing antitrust claims to brokerage commissions, and we intend to bring the same scrutiny and expertise to our case against Zillow,” Berman added.

Zillow Agents & Loan Officers Share Insider Info

The lawsuit states that since Hagens Berman’s initial complaint was filed, 12 confidential witnesses have stepped forward and provided ”details that expose just how deliberate and destructive Zillow’s policies are,” including:

• To avoid putting anything in writing, Zillow personnel allegedly fly to real estate offices to instruct Zillow Flex agents in person on the need to meet Zillow Home Loan (ZHL) quotas.
• The lawsuit alleges that Zillow loan officers frequently misrepresent or omit important details about borrowers’ true closing costs, leading buyers to pay excessive costs or lose the house.
• Based on the hidden Zillow Fees, Zillow Flex agents are allegedly incentivized to “burn and churn” through clients, at their clients’ expense.
• Similarly, the lawsuit alleges ZHL “cherry-picks” only the most qualified borrowers, because ZHL loan officers are inexperienced, underpaid and incentivized to churn as many borrowers as possible without any regard for clients’ interests.
• According to the lawsuit, many Zillow Flex agents know virtually nothing about the real estate process, or the neighborhoods in which they are showing homes, yet these same agents are falsely promoted as a “Top Agent” on Zillow based solely on their participation in the Zillow Flex program.
• The lawsuit accuses Zillow of implementing a requirement that Flex agents use Zillow’s “Follow-Up Boss,” which allows Zillow to eavesdrop on communications between the agent and the buyer, violating the agent’s duty of confidentiality.
• Zillow allegedly uses the “Follow-Up Boss” to “catch” Flex agents who may recommend other loan providers to their clients.

Homebuyer Beware

According to the firm, new information from Zillow-affiliated agents and loan officers alleges the real estate giant is illegally forcing agents to refer customers to Zillow Home Loans, in violation of their fiduciary duty as agents, and in violation of the Real Estate Settlement Procedures Act (RESPA). The lawsuit details Zillow’s performance standards for agents, which expressly tie Zillow Home Loans referrals into the company’s “gateway to growth” laid out to its employees.

“Zillow is not even being coy about what its policy is, and agents are taking note – with many agents speaking out about their concerns about the legality of this policy,” the lawsuit states, citing remarks from real estate commentator and podcaster, Jared James.

In addition, the lawsuit expands to include RICO claims alleging Zillow and the brokerages work together to induce prospective homebuyers into using Zillow Flex agents, and illegally steering buyers into using Zillow Home Loans.

“Zillow’s practices and policies in the real estate industry are not simply indifferent to the agents’ duties to protect their clients’ interests; Zillow actively schemes to subvert them,” the lawsuit states. “Zillow’s goal is simple: to monetize every step of the home buying process—even if illegally—and to encourage, incentivize, and ultimately coerce agents into violating their fiduciary duties by disregarding their clients’ interests.”

“Buying a home is typically the largest and most complex financial decision someone makes in their lifetime,” Berman said. “Zillow has sought to take advantage of homebuyers, in a manner that is, in our view, illegal.”

Read more about the lawsuit against Zillow regarding its alleged use of deceptive practices involving Zillow Home Loans and Zillow Flex agents.

About Hagens Berman

Hagens Berman is a global plaintiffs’ rights complex litigation law firm with a tenacious drive for achieving real results for those harmed by corporate negligence and fraud. Since its founding in 1993, the firm’s determination has earned it numerous national accolades, awards and titles of “Most Feared Plaintiff’s Firm,” MVPs and Trailblazers of class-action law. More about the law firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.