Consumer complaint received 2019-11-01
Company: Rocket Mortgage, LLC
State: SD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On XX/XX/XXXX, my husband XXXX XXXX and I, XXXX. XXXX closed on a refinance with Rocket Mortgage ( Quicken Loans. ) Loan number XXXX. Our new/refinanced mortgage is also with Quicken Loans, Loan number XXXX. I reviewed the Short Year Escrow Analysis I received from Quicken Loans as well as the escrow Disbursement Check Voucher that I received on or after XX/XX/XXXX in the amount of {$180.00}. The actual escrow balance in my account after closing was {$260.00}, the amount I expected to receive as a refund from Quicken Loans. Instead, Quicken Loans paid to FHA Insurance on the same day they provided me the Disbursement Check in the amount of {$180.00}. Quicken Loans should not have paid FHA Insurance on a loan that had been paid off three weeks prior to that date. They also paid FHA Insurance on XX/XX/XXXX, and because the loan paid off only two days later, I should have received a prorated amount of the FHA Insurance as well. Further, I'm unsure that I even needed to be paying FHA Insurance on my old loan, because the principal balance of the loan at closing and for a while before that was less than 78 % of the appraised value of the my residence and my loan term was less than or equal to 15 years. 

On XX/XX/XXXX, we received a payoff statement that was valid through XX/XX/XXXX. Our loan closed prior to that date. The payoff statement indicated that " netted escrow '' is in the amount of - {$2600.00}, whereas in our the Short Year Escrow Analysis, the actual balance in my escrow account on the date of the payoff statement was  {$2100.00}. This amount is inconsistent, and if they were netting out the escrow from my payoff statement, why then is section K of the closing disclosure maintaining a cushion of {$1700.00}, which was paid before closing, apparently. Also included in the payoff was payment of PMI/MIP of {$240.00}, which did not make sense because funds each month had been withdrawn from my escrow account to pay this amount, and I was current. 

Speaking of appraisals, the reason why I decided to refinance on this property is that in the mortgage portal where I pay my mortgage, Quicken Loans provided an " estimated '' value of my home exceeding $ 330K. This amount was in line with my understanding of the value of my home as compared to homes in my area, and I consulted with my trusted realtor and she confirmed the same. Instead, the appraiser valued my home, based on comps that were not in my neighborhood or were not sold and the value of the home came in around $ 30K- $ 35K less than what we were expecting and what Quicken Loans estimated our home value to be. One of the properties he used to compare was still for sale and had been for sale since XXXX. I appealed the appraisal and of course the appraiser denied my request because there is no independent review and why would they admit they were incorrect in their assessment? So, either Quicken Loans steered me into a refinance so they could collect over {$8300.00} in closing costs notwithstanding the amount of the cash paid at closing to us as borrowers was half of what we were expecting, or {$16000.00} short of what we should have received, and/or they and their appraisal service XXXX violated the Minimum Appraisal Standards Rules found in 12 CFR 323.4. 

Further, at closing, a notary came to our house with closing documents for us to sign. I had several questions for her related to the closing documents, and she did not know the answers. We paid at least {$400.00} for this service to XXXX, XXXX, for a 1/2 hour of services while we signed the loan documents and she notarized, which is egregious. The notary was an employee/agent of XXXX XXXX, who was also the Appraisal Company that provided our ( deficient and erroneous ) appraisal. This is demonstrated on the closing statement in Section B, that showed the appraisal fee, as well as a tax certification fee, and title, settlement and closing fee all being paid to XXXX XXXX. This violates the Appraiser Independence rules outlined in 12 CFR 323.5.

I would appreciate if Quicken Loans would provide explanation and analysis of these issues, and provide me refunds and further disbursements for the errors they made relating to our loan payoff, closing and refinance.

Company response to consumer: Closed with explanation