Consumer complaint received 2020-12-30
Company: Rocket Mortgage, LLC
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
I am a XXXX XXXX XXXX married man who is semi-retired from t business with nearly 50 years of extensive XXXX XXXX and assets. I operate as a XXXX XXXX XXXX XXXX now to a firm under long term contract On XX/XX/2020 I attempted to qualify for a 30 year fixed rate conventional mortgage with Rocket Mortgage for purposes of refinancing an existing mortgage on my primary residence. My equity in the property is substantial. The lenders ' exposure on the property would not be great. 

I was provided with fixed interest rates and terms. 

Rocket asked me to provide supporting documentation such as tax returns and sources of income for purposes of determining approval. I stipulated that I was self-employed as a management consultant in addition to drawing social security and pension distributions. Rocket then requested audited financial statement for my XXXX  and copies of my XXXX checking accounts. I informed them that I did not have an XXXX  nor an XXXX  chartered but recognized all XXXX  income as personal income. However, my tax returns did contain Schedule C which is XXXX  profit and loss. 

On XXXX, I uploaded multiple year tax returns, checking account statements and a proforma of my estimated profit and loss for 2020. I stipulated that the majority of my consulting income was derived from a 3 year guaranteed contract with the company I advise. I offered a copy of that executed copy. 

They replied on XX/XX/XXXX indicating that my qualified income was too low as would leave an debt to income ratio of 72 %. It was clear that they had disqualified my consulting income and were only counting pension and XXXX benefits They again insisted upon 1. audited financial statements or 2. copies of my business checking account and unaudited profit and loss in order to raise the qualified income. 

As I had already told them I did NOT have these documents, I again suggested reference to Schedule C of the tax returns and I would be happy to send them the formal 3 year contract for consulting services. 

They said due to " new covid 19 underwriting standards '' that they had to insist on the audited financial statements as a condition of approval. 

I said this seemed arbitrary and unreasonable given my tax returns submitted to the IRS showed a profit and loss statement ( Schedule C ) and no reasonable person would perjure themselves with the IRS! They were not buying it at which point I said this felt like age discrimination. At that point, they said they would turn the process over to their Senior Research Team I received a call from a person from this Team late on XX/XX/XXXX at which point I again make my case, pointing out that I had substantial liquidate assets which could also support the integrity of my application along with the 3 year guaranteed consulting contract. 

This individual was non-committal and said I would get a call from their Director of Banking no later than Monday XX/XX/2020. 

Over the week-end of XXXX XXXX I provided them a copy of the afore-mentioned consulting contract along with my own debt to income calculations that showed a ratip well under 40 %. 

I never received a call from the Director of Banking but instead received an email on XX/XX/XXXX from the loan officer indicating that my debt to income ratio was now ok, but the stipulation would remain about the audited financial statements. 

I responded to the email reiterating my position that XXXX I had a 3 year guaranteed future income stream for the XXXX  work 2/ my Schedule C filed with the IRS should be sufficient to provide more than reasonable surety about my XXXX  " profit and loss '' On XX/XX/XXXX, they rejected these arguments and insisted on their original conditions. 

I believe demanding an audited financial statement for a self-employed individual not operating under XXXX nor XXXX  is absurdly rigid and constitutes a cost burden that many self employed people may not have. Given the fact that I have a iron clad 3 year contract for future income, that should have even more surety about FUTURE income than the value of a BACKWARD looking audited financial statement. 

At no time was I told what these new " covid-19 '' requirements included broadly, only that the audited financials were needed. I question if these are being required of all XXXX  XXXX  people OR only those of my age. 

I have substantial liquid assets would on paper would allow me to satisfy this mortgage several times over ... I was NEVER asked about these assets as a means to provide Rocket with more comfort about their risks. Nor did Rocket offer any options such as putting more equity into the deal, taking a shorter term or any other suggestions to reduce their perceived risk. 

I think it smacks of age redlining and I am NOT HAPPY.

Company response to consumer: Closed with explanation