Hagens Berman: What Homebuyers Need to Know About the Zillow Home Loans Lawsuit

A nationwide class action accuses Zillow of steering homebuyers to use Zillow Home Loans, in violation of federal law. Consumers can find out more about the lawsuit.

SEATTLE--(BUSINESS WIRE)--In 2025, several homeowners filed a class-action lawsuit against Zillow Inc. accusing it of “deceptive” practices and policies, and the consumer protection law firm behind the filing, Hagens Berman, wants the public to know their rights.

If you used Zillow Home Loans to purchase and finance a home since 2019, you may have overpaid and are encouraged to contact our legal team. Find out more »

What is the lawsuit against Zillow about?

The lawsuit alleges Zillow pushed homebuyers to use Zillow Home Loans rather than the best available options, a practice in real estate called steering. In addition to steering, based on insider information shared by a dozen current and former Zillow loan officers and agents, allegations include:

• incentivizing agents to “burn and churn” through clients,
• eavesdropping on agent-client communications and
• censoring agents from recommending competing loan providers that may offer consumers a better deal.

Anonymous witnesses from the real estate industry corroborate these allegations, according to the lawsuit.

How did Zillow’s alleged conduct affect homebuyers?

Those affected by the alleged conduct may have experienced an increased purchase price and higher borrowing costs.

Are you affected?

Homebuyers from all states may be affected. If you financed the purchase of your home through Zillow Home Loans since 2019, learn more about your rights on our website and contact our legal team with questions.

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.

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