Consumer complaint received 2016-01-07
Company: Rocket Mortgage, LLC
State: CA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Settlement process and costs

Complaint:
Consumer Financial Protection Bureau Complaint Cover Letter Items disclosed and documented by Quicken Loan that I believe violate current lending laws : 1. Changing the quoted interest rate on the XXXX XXXX XXXX 2. Origination points added to the loan on the Second Loan Estimate 3. Lender Credits added to the loan on the Second and Third Loan Estimate On XXXX XXXX, 2015 I applied online for a 95 % purchase loan for a condo in XXXX, CA. 

I received a call from XXXX XXXX from Quicken Loans within seconds after applying online. I told XXXX XXXX that I wanted a 95 % purchase loan with no PMI and no points. XXXX XXXX ran our credit ( my wife and daughter were also going to be on the loan ). I then asked XXXX XXXX about the rates and he quoted me between 3.875 % and 4.25 % for this loan with our credit. XXXX XXXX then issued a pre qualification letter for {$420000.00}, the full purchase price for the condo we were going to make an offer on. ( I was informed that this call was being recorded. ) Over the next several days we supplied all of the documentation XXXX XXXX requested ; pay-stubs, income, tax returns, etc. 

It took us over a week to obtain a signed Purchase and Sales Agreement on the property for {$410000.00}. I sent a copy of the signed Purchase and Sales Agreement to XXXX XXXX. 

On XXXX XXXX, 2015 XXXX XXXX sent out the first Loan Estimate from Quicken. The rate had jumped to 4.625 % with no explanation as to the rise in rate. I also asked XXXX XXXX why the APR was higher than the rate, since we were paying all closing costs out of pocket, the XXXX should be the same. I got no answer. 

Quicken 's Lender cost was {$790.00} for processing. No points, and no other loan origination fees or credits. 

We received a second Loan Estimate from XXXX XXXX on XXXX XXXX, 2015. The purchase price had been changed to {$420000.00}, incorrectly, and points of 1.875 % had been added along with lender credits of {$500.00}. The estimated cash to close had doubled. 

I immediately sent XXXX XXXX an email pointing out the changes to the Loan Estimate, specifically the added origination points. His response was, " You are not paying any points though, we have to show you the points you were going to pay, until I waive them. '' XXXX XXXX 's response was the XXXX for me. Like the change in quoted rates, I suspected XXXX XXXX was not being truthful. 

My daughter sent XXXX XXXX an email explaining he was out of compliance with XXXX and included a link to the CFPB website. 

XXXX XXXX then responded with the excuse that there was a technical problem with the Quicken system. He said a new Loan Estimate would be sent. The third Loan Estimate was {$7600.00} higher than the original estimate for the cash to close. The lender credit was still listed, and the purchase price was still incorrect. 

Needless to say, our faith in XXXX XXXX and Quicken Loans was exhausted. At that point I told XXXX XXXX to cancel our loan with Quicken and to cancel the scheduled appraisal on the property. 

I am supplying copies of the XXXX Loan Estimates, and the email chain where XXXX XXXX makes the statement about waiving points, and then saying there was a problem with the Quicken system. 

XXXX XXXX was either deceptive or ignorant. Because he stated a lower interest rate on day XXXX and then increased the rate on the first Loan Estimate, and then on the Second Loan Estimate he added origination points and Lender Credits, along with the XXXX email stating that points were on the loan until he waived them, I have to believe XXXX XXXX was being deceptive. 

If you need more information please let me know.

Company response to consumer: Closed with monetary relief