Zillow Class Action: Hidden 40% Fees and Mortgage Steering

November 24, 2025 — A federal class action lawsuit against Zillow alleges the company hid 40% referral fees from homebuyers and illegally steered them toward higher-cost mortgages. If you used Zillow to buy a home in the past four years, you may be eligible for compensation.

What the Lawsuit Alleges

The class action claims Zillow charged hidden 40% referral fees that were never disclosed to homebuyers. According to 12 confidential witnesses (former Zillow Flex agents), the company used quotas and surveillance software to pressure agents into steering clients to Zillow Home Loans, even when better options existed.

The lawsuit alleges violations of federal RESPA laws prohibiting illegal kickbacks and includes RICO charges that allow for triple damages if proven.

Who's Eligible

You may be eligible if you clicked "Contact Agent" on Zillow, were connected to a Zillow Flex agent, and bought a home in the past four years. You may also qualify if you were referred to Zillow Home Loans by a Zillow-affiliated agent and obtained a mortgage through them.

The lawsuit seeks $5M+ in damages, with potential triple damages under RICO charges.

What Happens Next

Zillow must respond to the lawsuit within 21 days. The discovery phase will last 12-18 months, followed by a class certification hearing. Most class actions settle before trial.

With $3B+ in Zillow Home Loans originated in 2024 alone, this lawsuit potentially affects thousands of homebuyers nationwide who may have paid inflated commissions or received higher mortgage rates without knowing why.

Get Notified When Claims Open

This lawsuit is in early stages. Download ClassyAction to track the Zillow case and get notified when the settlement is available.