Consumer complaint received 2022-04-01
Company: Rocket Mortgage, LLC
State: NJ
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
Complaint Letter to Rocket Mortgage Your organization takes pride in its stated value - every client, every time, no exceptions, no excuses. This is a wonderful aspiration and it is equally important to recognize the few times when you might have failed to live up to that stated objective. 

I would also like to bring to your attention that while this was a personal mortgage request, professionally I have worked as a senior banker for over 25 years and my current role includes originating mortgages under the XXXX XXXX XXXX XXXX Your response that this request did not meet the cash-out title seasoning requirements is inaccurate. My loan request was registered as Cash-out under the Delayed Financing Exception of XXXX XXXX  due to the following criteria being met : 1. I purchased the subject property XXXX XXXX XX, XXXX  XXXX XXXX within the past six months ( measured from the date on which the property was purchased XXXX to the proposed disbursement date of the new mortgage loan approx. XXXX ). This transaction was eligible for the delayed financing exception as it met all requirements, namely : a. The original purchase transaction was an arms-length transaction. 
b. We purchased the property as a natural person. 
c. The original purchase transaction ( {$370000.00} ) was documented by a settlement statement, which confirmed that no mortgage financing was used to obtain the subject property. 
d. The preliminary title search and report confirmed that there are no existing liens on the subject property. 
e. The sources of funds for the purchase transaction were documented ( such as bank statements, and HELOC on XX XXXX XXXX, XXXX, XXXX XXXX ) i. Cash used from own funds- {$210000.00} ii. Cash from HELOC on primary residence XX XXXX XXXX XXXX XXXX XXXX {$160000.00} f. The Proceeds of the Cash out Refinance were proposed to be used to ( among others ) pay off the HELOC on XX XXXX XXXX XXXX XXXX XXXX XXXX 
g. The proposed loan amount was not higher than our initial investment in the property 2. I am aware that XXXX constitution has a special Provision 50 ( 1 ) ( 6 ) which applies to Cash out transactions on Homestead properties or if a property has existing XXXX  50 ( a ) ( 6 ) provisions. I believe this transaction was NOT subject to these provisions due to the following reasons. 

3. The definition of a XXXX XXXX in XXXX is a. If the subject property is a primary residence. 
b. The subject property is a second home or investment property, and either of the following are true : i. The primary residence ( s ) for any applicants on the loan is located outside of XXXX 
ii. The applicants do not have ownership of their primary residence in XXXX 

4. The Property is NOT a Homestead property in XXXX XXXX XXXXs 50 ( a ) ( 6 ) applies to Homestead properties, which are primary residences or if it is an investment property, if it is the ONLY investment property in XXXX 
b. My primary residence is XX XXXX XXXX  XXXX, XXXX XXXX XXXX I have another investment property in XXXX at XXXX XXXX XXXX XXXX, XXXX XXXX XXXX  XXXX XXXX Hence it is NOT a Homestead property. 

5. The subject property did NOT have Existing XXXX 50 ( a ) ( 6 ) provisions : a. Property was purchased in cash. 
b. Previous transaction was not a XXXX 50 ( a ) ( 6 ) transaction c. The Title report confirmed the above. 

6. As documented since it is not a Homestead Property, the provisions of XXXX  50 ( a ) ( 6 ) do NOT apply, and it is a standard Cashout refinance transaction subject to XXXX XXXX Delayed Financing guidelines, which allows a cash out prior to a 6-month seasoning period. This criterion has been outlined in # 1 ( a to g ) above and my loan request met all the requirements. 

7. Confirmation of meeting all the Cashout refinance transaction subject to XXXX XXXX Delayed Financing guidelines is further evidenced by my ability to close on Cashout delayed refinancing for {$280000.00} with XXXX on XX/XX/2022.

Company response to consumer: Closed with explanation