Consumer complaint received 2021-06-29
Company: Rocket Mortgage, LLC
State: AK
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
My husband and I initially applied for a cash-out-refinance on our home at XXXX XXXX XXXX XXXX XXXX, XXXX, AK XXXX with Quicken Loans on XX/XX/2021. We were promised a quick closing of 2-3 weeks by XXXX XXXX XXXX, XXXX XXXX XXXX. 

We were initially placed in a VA loan, comparable to what we currently have with XXXX  at 2.25 % which had closed on XX/XX/2021. We were approved for this loan on XX/XX/2021, sent Quicken Loans a copy of our Loan Document with XXXX and were sent an approval letter from Quicken Loans dated XX/XX/2021. 

On XX/XX/2021, XXXX XXXX, XXXX Loan XXXX, stated our loan with XXXX was not seasoned and that XXXX XXXX should not have written a VA mortgage. XXXX XXXX rewrote our loan to conventional with estimated additional {$1700.00} in closing costs. 

I complained to XXXX XXXX, XXXX, Solution XXXX. He stated that it was a mistake to have written our loan as a VA loan. XXXX XXXX told me Quicken Loans had gone to great lengths to get the 2.25 % interest rate and to get the more than reasonable closing costs set forth in the conventional loan. The closing costs had jumped from {$6900.00} in the VA loan to {$8600.00} in the conventional loanan increase of {$1700.00}! 

I complained to Mr. XXXX that not only was I disturbed by the rise in closing costs but the fact that Quicken Loans would not lock the interest rate. I noted that Quicken Loans own website notes that mortgage rates are subject to change and that borrowers should lock in their interest rate as soon as possible. Mr. XXXX was unimpressed by our plight and stated that we could refuse to process the loan. It was his feeling that other conventional loan clients would clamor for the rate and closing costs we received. He agreed that we should not have been told that we would close in 2-3 weeks. 

Not only has Quicken Loans refused to mitigate the damage to us caused by the abrupt increase in closing costs caused by a mistake Quicken Loans made by putting us in the wrong financial product, and the misstatement made to us about the quick closing, Quicken Loans is refusing to take their own advice, as stated on their website, and lock us into a lower rate, preferring instead to let the rate float, hoping, I suppose that the rate will increase and we will be stuck with a higher rate at closing. This is totally unacceptable to us and indicative of a deceptive, duplicitous mortgage lender. 

I contacted the Consumer Financial Protection Bureau on XX/XX/2021 and was informed that Quicken Loans refusal to lock rates for Alaskan consumers may be illegal. I contacted Banking and XXXX in Alaska and they are currently looking into this matter. 

It is my husband and my feeling that Quicken Loans has been deceptive from the inception of this loan process. XXXX XXXX indicated to me during our telephone conversation that no Alaskan resident is receiving rate locks until the title documents are prepared and finalized which can take over five weeks or more. His statement that Quicken Loans Had gone to great lengths to get the 2.25 % interest rate I suppose, was just a joke! 

Quicken Loans should clearly post on their website that they will not lock Alaska consumers interest rates until the title documents are received. This would adversely impact any consumers willingness to deal with Quicken Loans while this punitive policy remains in place. This punitive policy virtually guarantees that Alaskan residents will receive a higher interest rate than what was quoted at the time of application. 

Further, when substantial monetary mistakes are made in estimating and putting clients in the wrong financial product, consumers should not bear the financial burden of the companys mistake. Quicken Loans should. The fact that Quicken Loans could not offer a {$1700.00} credit to get our closing costs more in line with the original product offered and approved, gives indication not only of a predatory lender but of a deceptive one as well.

Company response to consumer: Closed with explanation