Rocket Mortgage has sued a California mortgage brokerage and one of its executives, alleging they knowingly submitted fraudulent loan applications that concealed borrowers’ debts and caused financial losses after the loans were sold to investors.

In a complaint filed Tuesday in the U.S. District Court for the Eastern District of Michigan, Rocket Mortgage said Sharp Loan Inc. — formerly known as Sterling Homex Inc. — and originator Reynaldo Reyes misrepresented borrowers’ financial obligations in three mortgage applications submitted in March 2020. Summonses were issued to Reyes and Sharp Loan on Wednesday, according to the docket report.

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