“Zillow Mortgage Steering Scandal: 12 Agents Come Forward in Major Class-Action Case”

Insider Agents Speak Out: New Evidence in Expanded Class-Action Lawsuit Against Zillow

A newly amended class-action lawsuit against Zillow is gaining fresh momentum. On November 19, 2025, law firm Hagens Berman announced that twelve current and former real-estate agents and loan officers have come forward with insider testimony revealing what they describe as “deceptive” practices connected to Zillow’s home-buying and mortgage operations. hbsslaw.com+1

What the Whistleblowers Say

According to the lawsuit, these confidential witnesses offered detailed accounts of internal policies and pressures allegedly used by Zillow to steer buyers — effectively compromising the impartiality agents are supposed to maintain:

• Agents claim Zillow personnel visited offices in person (rather than documenting in writing) to stress quotas tied to referring clients to Zillow Home Loans (ZHL). hbsslaw.com+1

• Many loan officers reportedly misrepresented or omitted key details about closing costs, leading buyers to pay more than expected — or even lose their home altogether. hbsslaw.com

• Critics say Zillow’s model incentivizes agents to “burn and churn” clients: push them through fast, then move on — regardless of whether the loan is in the buyer’s best interest. hbsslaw.com+1

• The lawsuit also claims ZHL cherry-picks only the most qualified borrowers (because many of its officers are inexperienced and paid per referral), while still presenting Zillow Flex agents as “Top Agents,” even if they know little about the local market. hbsslaw.com+1

• In addition, Zillow allegedly requires “Flex agents” to use an internal tool called Follow-Up Boss — which critics say allows Zillow to monitor agents’ communications with clients and prevent them from recommending outside lenders. hbsslaw.com+1

Legal Claims: More Than Just Hidden Fees

The amended lawsuit claims these practices violate not only the fiduciary duties that agents owe their clients, but also federal law. Specifically, the suit cites alleged violations of the Real Estate Settlement Procedures Act (RESPA) — which bars certain referral fees — and even alleges collusion amounting to racketeering under the Racketeer Influenced and Corrupt Organizations Act (RICO). hbsslaw.com+1

Lawyers representing the plaintiffs argue Zillow and affiliated brokerages — named in the complaint as Works Industries LLC, GK Properties, The Frano Team and others — have coordinated to push buyers into Zillow’s own mortgage services — making Zillow money every step of the way. hbsslaw.com+1

What This Means for Homebuyers

According to the complaint, the new evidence suggests that if you used Zillow — whether you clicked “Contact Agent” to schedule a showing, used a Zillow-contracted agent, or financed your home with Zillow Home Loans — you could be affected. The allegations paint a picture of a system designed not to serve homebuyers, but to funnel commissions and loan profits back to Zillow at the buyers' expense. hbsslaw.com+1

The plaintiffs — backed by former insiders — hope this case will not only bring financial relief but also push Zillow to change its business practices. As Hagens Berman notes, the firm has previously secured more than $1 billion in settlement awards against other real-estate companies for similar misconduct.