Consumer complaint received 2016-11-03
Company: Rocket Mortgage, LLC
State: MI
Product: Mortgage
Sub-product: VA mortgage
Issue: Application, originator, mortgage broker

Complaint:
XX/XX/XXXX my wife and I made an offer on a small farm near XXXX MI. The home sold in XXXX parcels, the land and the house. I contacted Quicken Loans for a mortgage. The home sold for {$290000.00} and the land for {$140000.00}. We told QL we wanted to pay cash for the land and put approximately {$190000.00} on the house. We anticipated a closing date of approximately XXXX XXXX. 
We did not know the exact amount we had because we kept all of our money in a bond fund which paid a dividend in XXXX. QL told me that was n't a problem but they would use {$110000.00} as a planning number for the mortgage and adjust it before closing. I told QL that we had approximately {$30000.00} we could put into the house after the XXXX which was in another account. I wanted to restructure the loan payments then to lower my monthly payment. QL said that was fine, it was called 'recasting a loan '. Interest rate on the loan did not change ; as long as we had more than {$10000.00} to put to principle they would recast ( precompute the Principal and Interest portion of the monthly payment ) for a fee of {$100.00}. This was easily accomplished. QL then approved our mortgage. They then established a VA loan for the mortgage. 
QL established the closing date as XXXX XXXX. In XXXX I asked them when they needed to know exactly how much money I was going to have available. I was met with confusion but they would get back with me. On XXXX XXXX QL told me that they had approved the loan, closing XXXX XXXX but there was no recast provision and the loan was for {$110000.00}. 
I told them that was wrong, they had promised I could recast and I had {$200000.00} to put to the loan. I asked to speak to the loan officer 's boss. Eventually, a QL executive, XXXX XXXX XXXX XXXX XXXX Executive Office/ Senior Resolution Advocate, Quicken Loans Client Relations, Ph : XXXX Ext. XXXX, XXXXXXXXXXXX ) called me back, told me she would review the tapes of my conversations with QL and see if I had been misled. 

On Monday XXXX XXXX she called and told me that " yes, the tape shows we characterized your loan incorrectly. '' She said she would work to fix the down payment number but did not know exactly how they would fix the recast issue as VA loans did not have recast procedures. Something she acknowledged I had been misled on. She said she would make it right. I told her I had given my word on the closing, the sellers needed to close in the afternoon and we could not slip the date. She said she would research and get with her loan officers and find a solution. We went ahead with the closing on XXXX XXXX XXXX Monday XXXX XXXX she called and said there was no economic reason for QL to make a correction to the loan because at {$94000.00} it was too small and there was no money in it for QL. She would n't do anything until she saw the rates in XXXX. I asked her what rates had to do with anything. She said she would see. I asked what rates needed to be for QL to fix their error. She said she would see in XXXX. 

I need to recast that loan as it 's a {$210.00} difference in payment per month. I may want to recast it a second time several months later. Had I known I could not recast the loan I would have not used a 15 year mortgage ( choosing 30 years instead ) and, at least seriously considered accepting the higher tax I would have paid to withdraw from our XXXX account. I would have not used a VA mortgage either. Also, had they sent the mortgage loan paperwork to me in a timely manner I would have had time to review and correct the deal, but they did n't. They posted it to my 'online ' site the day before, I did n't see any actual paperwork until the closing event. I had already confirmed the closing with the seller, pledging to close on the morning of the XXXX so they could close on their home that afternoon. All of the above is recorded at QL.

Company response to consumer: Closed with explanation