Consumer complaint received 2016-06-02
Company: Rocket Mortgage, LLC
State: NJ
Product: Mortgage
Sub-product: VA mortgage
Issue: Settlement process and costs

Complaint:
On or about XXXX XXXX, 2016, I initiated contact with Quicken Loans because it was listed as at the XXXX XXXX XXXX XXXX XXXX website the country 's second biggest VA Guaranteed Loan supplier. On XXXX XXXX, 2016 the real estate agent supplied Quicken Loans via email a copy of the purchase contract I signed with a seller of a property I was interested in. On XXXX XXXX, 2016, Quicken Loans sent to its MyQL to do list a VA Loan Disclosures and Certifications document that included a paragraph numbered XXXX that states that : DO NOT BE MISLED! VA DOES NOT GUARANTEE THE CONDITION OF THE HOUSE WHICH YOU ARE BUYING, WHETHER IT IS NEW OR PREVIOUSLY OCCUPIED. VA GUARANTEES ONLY THE LOAN. YOU MAY TALK TO MANY PEOPLE WHEN YOU ARE IN THE PROCESS OF BUYING A HOUSE. PARTICULARLY WITH A PREVIOUSLY OCCUPIED HOUSE, YOU MAY PICK UP THE IMPRESSION ALONG THE WAY THAT YOU NEED NOT BE OVERLY CONCERNED ABOUT ANY NEEDED REPAIRS OR HIDDEN DEFECTS SINCE VA WILL SURE FIND THEM AND REQUIRE THEM TO BE REPAIRED. THIS IS NOT TRUE. IN EVERY CASE, ULTIMATELY, IT IS YOUR RESPONSIBILITY TO BE AN INFORMED BUYER AND TO ASSURE YOURSELF THAT WHAT YOU ARE BUYING IS SATISFACTORY TO YOU IN ALL RESPECTS. REMEMBER, VA GUARANTEES ONLY THE LOAN - NOT THE CONDITION. 
This clause that Quicken Loans demands that I stipulate directly contradicts the Minimum Property Requirements ( MPRs ) of Chapter XXXX of the VA Lenders Handbook- VA XXXX XXXX. Chapter XXXX outlines the MPRs that are required to be verified by the lender in order for the veteran to be able to buy a house without any needed or hidden repairs. Additionally, Chapter XXXX of the Lenders Handbook at XXXX clearly states that : An appraisal is required to help ensure that any property which will become the security for a VA-guaranteed loan has a value of at least as much as the loan amount, and is in a condition acceptable to VA. 

However, the relevant Quicken Loans clause states that it is not the VA that decides the acceptable condition that the property needs to be, but that it is the veteran that is responsible for the condition of the property. I attempted to confer with the Quicken Loans representatives purportedly helping me with closing the loan for a property located in XXXX NJ. However, these representatives persistently insisted that Quicken Loans does not request any inspections of the house to ascertain it meets the MPRs. These representatives insisted that only a VA Appraisal is needed and that the property does not need to be eligible to be Appraised as required by the Lenders Handbook at : XXXX Types of Property Eligible for Appraisal Lender Responsibility If the lender fails to exercise due diligence in determining appraisal eligibility, VA may deny or reduce payment on a future claim based on the ineligibility of the property. 
Properties not eligible for appraisal and other appraisal request restrictions are described in Sections XXXX and XXXX. 

Section XXXX of the Lenders Manual further states that the property must also meet the MPRs outlined in XXXX XXXX. 
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Company response to consumer: Closed with explanation