Consumer complaint received 2019-09-30
Company: Rocket Mortgage, LLC
State: MI
Product: Mortgage
Sub-product: FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
To sum this up to start off I am not contesting that the property inspection was done or that the payment terms were or were not discussed with me. My issue is I was told FALSE INFORMATION in order to get me to proceed with the process. It was later admitted to me BY MY QUICKEN REP that they told me incorrect information accidentally, before I agreed to pay the {$500.00}, and thats why I am contesting the amount. The admission was on the phone but although Quicken tells you they are recording everything I am sure they wont give that recording up. 

Quicken will say my property estimate came in under and thats why the numbers were incorrect but that simply is not true. My property actually came in {$4000.00} higher than I estimated it was worth, I said XXXX and it came in at XXXX, it was my Quicken loan rep that wanted to say it would appraise for more but I was very conservative in homes estimated value because I didnt want to go thru the process and be disappointed. 
I told my rep, XXXX XXXX, that I only would be willing to do this if I was able to do certain things. I didnt want any cash out, only to lower my interest rate and pay off some debts. After I gave him all the requested info, including nearly all the requested documents within 24hrs, he calls me and says CONGRATULATIONS! We are going to be able to refi your home and pay off everything you requested, all we need is a good faith deposit of {$500.00} for the appraisal. We went over the entire scope of the loan before I agreed to pay {$500.00} and because it lined up with everything I wanted to do I agreed to proceed. 

I had put in a refi inquiry not only thru Quicken but thru a couple other sources online so I was being contacted pretty consistently by other mortgage companies but initially because I was proceeding with Quicken I didnt entertain any other offers. As things progressed though, after the physical appraisal but but before I had received the report, I had noticed on the Quicken site that some of my terms have changed without me being informed and I expressed dissatisfaction with it ( messages are included at end of doc ). Due to that in the week between when the physical appraisal was performed and when I was given the results of it I decided to actually talk to other lenders to just see what they offered. 

When talking to a rep from XXXX XXXX I learned that in order for me to do everything I wanted to do, what my Quicken rep said I would be able to do, my property would have to appraise for nearly {$25000.00} more than the estimate I gave them. I even told the XXXX XXXX  rep that he must be wrong because thats what I was offered. He told me to contact them to verify the terms because he said they couldnt be correct. I immediately called my Quicken Rep, but he wasnt answering, I did leave a message explaining my questions and concerns. He did later call me and I told him what the XXXX XXXX rep told me and he says Oh yeah, I kind of messed up. I forgot this was a FHA loan and we can only lend you up to a certain percentage so yeah the numbers I gave you initially were off. I was not happy, I told him I wouldve never proceeded if he wouldve told me the correct info from the start. He just kept apologizing and told me to not worry because he said we would still be sitting good anyways and it would only be a little less than he quoted. 

The appraisal comes in at {$74000.00}, {$4000.00} more than I had said I thought it was worth. {$4000.00} more than what XXXX initially had told me if we got I would be able to do everything I had requested to be able to do but when I look at Quickens final loan rates online I can not do ONE of the other things I wanted to do on top of the rate refi. When I contact XXXX he tries telling me that its because the appraisal came in low to which I reminded him he told me I would be able to do all this stuff if my house came in {$4000.00} less than what it actually came in for but then he of course says that he told me the wrong info though, oh and sorry. 

I left messages on Quickens site expressing my dissatisfaction and my desire to get a refund. XXXX tells me sorry the {$500.00} is non-refundable but I inform him I never wouldve proceed from day 1 if he wouldve told me the correct info, to which he again apologizes. Exploring my options I learn that if I can get Quicken to legally release the appraisal to me then within 30 days I can still use it for another lender. I inform them that I either want a refund or the legal release of the appraisal that I paid for so I can use it other places. Quicken of course tells me I am not getting a refund and they email me a copy of the appraisal like that is enough. I know that a copy is not a legal release of the appraisal, I wanted it legally released and when I told them that on the phone they refused. Thats why I decided to go the route recouping the money thru my CC company. Even though he claims it was a mistake the Quicken rep told me incorrect information, and if he hadnt I wouldnt have proceeded to complete the process from day one. I wouldve never paid the {$500.00} for an appraisal if I was told in order for me to do everything I wanted my home need to come in at $ XXXX to $ XXXX because I know it would have ZERO shot of appraising at that. 

Heres a time line of the events : XX/XX/XXXX-Filled an inquiry with Quicken Loans online. Contacted by Quicken rep XXXX XXXX. All info given and all terms discussed. 
XX/XX/XXXX-Appraisal scheduled for XX/XX/XXXX with XXXX XXXX XXXX XX/XX/XXXX-Received Conditional Approval from Quicken XX/XX/XXXX-Appraisal preformed XX/XX/XXXX-Noticed terms have changed and contacted XXXX XXXX about and he admits he messed up. 
XX/XX/XXXX- Appraisal comes in at {$74000.00}. 
XX/XX/XXXX- All the terms change rather drastically and I try to contact XXXX but he will not answer or return my calls. I decide then to start posting questions thru the Quicken site and speak with a XXXX XXXX. XXXX calls me later that night and tells me the terms are not concrete yet and will adjust so give it some time, I agree XX/XX/XXXX-Seeing that the terms still havent changed I try calling XXXX and I get no answer but leave a message. 
XX/XX/XXXX-After not yet getting a call back from XXXX I decide to try messaging on the Quicken site again. A day later, XX/XX/XXXX, Rep XXXX XXXX responds and advises me to reach out to XXXX, which I had been trying to do. I call and leave another message XX/XX/XXXX-After trying to call XXXX to no avail. I again then turn to leaving messages on the Quicken site and this time I get a response from Rep XXXX XXXX who says XXXX will call me within 24hrs. 
XX/XX/XXXX XXXX calls me and I express my desire to either get a refund or have the appraisal legally released to me due to the fact that he told me incorrect info from day one and he tells me he understands why I am upset but the fees are non-refundable. 
XX/XX/XXXX-I leave a message on the Quicken site stating we are not continuing on and that we want either a refund or the legal release of the appraisal. Rep XXXX XXXX responds saying he understands that we do not wish to complete the loan and that someone will contact me regarding the {$500.00} deposit. 
After not receiving any call or contact within the next 24hrs I submitted to my CC company for the {$500.00} because like I stated before I wouldve never proceeded if I wasnt given ADMITTEDLY FALSE info from the start. 
I have also filled a complaint with the State of Michigan Attorney Generals office. This is not some random occurrence if you look at their history of complaints. Because of flat out fraudulent practices or sheer ignorance to their product they are telling people incorrect info BEFORE they pay for their appraisals on a regular basis. Once you find out then youve already paid and they go the no-refund route and you are out {$500.00} with no recourse.

Company response to consumer: Closed with explanation