Consumer complaint received 2021-11-08
Company: Rocket Mortgage, LLC
State: NM
Product: Mortgage
Sub-product: FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
The refinance process started XX/XX/2021, I was asked to upload to the website by XX/XX/2021, all of our personal and financial information that was requested to begin the refinance process. The refinance was to be with a lower rate and a cash-out of {$20000.00} with a {$140000.00} payoff of the original loan ( original loan is with Rocket mortgage ). The process seemed to be going along fine, we did understand due to the high volume of home sales at the time the process would be slower than normal. We received an offer for a great refinance rate of 2.375 % and an estimated {$23000.00} cash out. The appraisal on the home was completed on XX/XX/2021. At this time, the appraisal pointed out a few minor issues with the homes condition with a less than {$1000.00} price to cure. The mortgage company wanted to see {$5000.00} in my bank account to rectify the issues instead of the less than {$1000.00} the appraiser noted. Due to my bank account balance being just under {$5000.00} ( because the repairs had been started and being paid for ) they canceled the process. After speaking with another person at Rocket Mortgage they decide to continue the process and they asked for an inspection prior to closing. The repairs that were noted on the appraisal were completed on XX/XX/2021, at this time i stayed in constant contact with Rocket Mortgage to help move the process along. The building inspection was completed on XX/XX/2021 and according to Rocket Mortgage ( after speaking with them by phone ) the final inspection had been turned into them on XX/XX/2021. At this time, I was told that they wanted a survey done on the property. I promptly filled out the required paperwork and began the process to get a surveyor out to the home ASAP. The surveyor completed the survey on XX/XX/2021 and I was told by Rocket Mortgage that the survey had been turned in to them on XX/XX/2021. On XX/XX/2021 I began calling about twice a week, every time I was given a different closing date. Finally, on XX/XX/2021 I was told that the refinance would be cancelled because the appraisal was old and they could not continue. I was also told that they would not honor the rate that was given to me. 
I believe there were several issues with Rocket Mortgage 's handling of the refinance loan. 
XXXX. Rocket Mortgage continued to raise the closing cost fees in order to force an FHA backed loan on me. 
XXXX. Rocket Mortgage purposely slowed the process in the last two months to avoid honoring the 2.375 % rate. 
XXXX. Rocket Mortgage also continued to raise closing cost fees to allow for a PMI payment when it would not have been necessary after 8-9 months of mortgage payments were made essentially reducing the payoff balance. 
XXXX. I believe this to be a bait and switch scam. 

The process started out normally with a few bumps in the road that can be expected with any financial process. My problem with Rocket Mortgage came with the continuous slowing of the process so they would no longer have to honor the interest rate that was locked in for several months because the market was beginning to shift. As well as the constant upping of the closing cost fees in order to keep me with a PMI payment and an FHA loan.

Company response to consumer: Closed with explanation