Consumer complaint received 2022-01-28
Company: Rocket Mortgage, LLC
State: IL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On XXXX XXXX I applied for a VA loan with Rocket Mortgage for the purchase of a town home, ranch end unit, at XXXX XXXX XXXX in XXXX XXXX, Illinois loan number XXXX. The house was priced at {$210000.00} and I was putting down {$150000.00} and seeking a loan in the amount of {$690000.00}. 
Near the early part of XXXX, I reach to Rocket Mortgage, multiple times, to inform them I had concerns about obtaining a VA Loan due to time served in the military and wanted to switch over to conventional. In parallel, I didnt know at the time, on XX/XX/XXXX, XXXX XXXX XXXX Rocket Mortgage Executive Management Specialist sent my real estate agent a note stating that the house was undervalued and requested XXXX XXXX. My agent checked comps within .25 miles and indicated not many sold within last 6 months but sent what she had to XXXX XXXX who forwarded to the appraiser. 
On XX/XX/XXXX, I started requesting a disclosure of the VA appraised value and wanted a disclosure prior to the conventional appraisal and have multiple emails expressing my concern. I spoke to multiple parties at Rocket Mortgage, the last being XXXX XXXX, Resolution Advocate ( see attached email ). XXXX XXXX also disclosed that he could not get a copy of the VA appraisal because when I switched over to conventional the appraiser delete the file ; however, I was informed that I was charged for the appraisal costs. 
On XX/XX/XXXX XXXX pm XXXX, I was sent an interest rate disclosure document for the conventional loan indicating that my lock-in rate will expire if I did not sign by XX/XX/XXXX. Prior to that, I was told that I needed to reduce my down payment to increase the loan amount due to the there being a 5 % cap on fees as evidence in the disclosure. 
I had many failed attempts to get the VA and conventional appraisal ( I eventually gave up on the VA appraisal ). Rocket Mortgage provided multiple dates of when the conventional appraisal would be available but kept pushing the date back. The last date promised was XX/XX/XXXX. When I called XXXX XXXX who was handling my loan on XX/XX/XXXX, I was told XX/XX/XXXX. I finally mentioned to XXXX that I was cancelling my contract if I did not get a response by XX/XX/XXXX. Also, on XX/XX/XXXX, my attorney emailed me stating the appraisal was delayed because the conventional appraisal had similar concerns about the property being undervalue based on her conversation with the loan processor earlier in the week. 
Since the VA indicated the house was under value and the conventional appraisal was initially having similar issues based on attorneys response, I was shocked that the house appraised at {$220000.00}. 

When I reviewed the appraisal document it contain numerous flaws including my name. I am listed as XXXX XXXX. 

Discrepancies Identified : Borrowers Name Contract Price for Property XXXX vs XXXX Comparable incorrect footage and room size Interior of Comparable were updated throughout the house. 
Comparing a slab house with 2 story townhomes. XXXX was a ranch, slab house with a small loft on second floor with storage space in attic. 

I literally waited from XX/XX/XXXX to XX/XX/XXXX for an appraisal that did not even have my name right. Rocket Mortgage has a number of litigations regarding Rocket Mortgage inflating home values to push though a loan and I believe this is an example of one. I believe since I was covering the loan amount with a significant down payment with Rocket Mortgage being the first lien, I feel that this appraisal was pushed through and made to fit.

Also I believe Rocket Mortgage knew this house was undervalue and is the reason they were taking backup offers I would like a full governmental review, if this happened to me, I am sure it happened to other consumers. 
https : XXXX The Justice Department filed a False Claims Act suit against Quicken Loans in XXXX. The government said the company approved loans that should have been denied. It did this by sometimes asking property appraisers to inflate home values after an initial appraisal was too low to get a loan approved, according to the lawsuit.

Company response to consumer: Closed with explanation