Consumer complaint received 2024-10-07
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Fees or costs during the application process
Company: Rocket Mortgage, LLC (OH)

Rocket Mortgage refuses to refund my {$500.00} " good faith '' deposit despite its pre-application promises and after it failed to disclose material terms and conditions about when it will refund the deposit. Last month, I applied for a 30 year fixed rate conventional mortgage to buy a condo located in The Bluffs subdivision in XXXX, XXXX After reviewing my financial and income records, Rocket Mortgage XXXX XXXX XXXX XXXX me to pay a {$500.00} " good faith '' deposit to lock in the XXXX XXXX interest rate. XXXX advised I was a prime applicant to be approved and that my deposit later would be applied to my loan. But otherwise, my deposit would be refunded so there was no risk in paying this deposit. XXXX failed to disclose that condo mortgage applications currently were much more difficult to get approved because of new federal government requirements on condo HOAs regarding entire subdivision repair and maintenance, as well as HOA insurance coverages. These new very strict requirements became effective a few weeks before my application and they were causing many condo mortgage applications from qualified buyers to be denied. XXXX also failed to disclose that, unlike other lenders, Rocket Mortgage currently does not offer any conveniental loan alternatives like portfolio loans despite how it's website indicates otherwise. Subsequently, XXXX advised the subject HOA for my condo did not meet the new federal requirements because it was still in process of repairing roofs for the entire subdivision. XXXX explained it wasn't enough that the HOA acknowledged its duty and responsibility and that it was in process of updating the roofs. Instead, Rocket Mortgage demands these tasks be fully completed before it will approve my loan. In a XX/XX/year> email, XXXX 's supervisor, XXXX XXXX, explained that despite the information currently set forth on its company website and how it used to offer alternative portfolio loans for homebuyers in my situation, that Rocket Mortgage will not do so for me for reasons unstated and unknown. XXXX stated Rocket Mortgage will not grant an exception for me and told me to find another lender. In an XX/XX/year> email, I asked XXXX about the status of the refund of my deposit. In a reply email, XXXX stated for the first time Rocket Mortgage refuses to give a refund. When I replied that I feel deceived, misled and lied to, XXXX enlisted XXXX who reaffirmed that Rocket Mortgage will not return my deposit. I would not have submitted a loan application had XXXX and XXXX told me the truth about the recent changes that apply to condo subdivisions and their HOA, and had Rocket Mortgage 's website contained current, accurate and honest information about lack of exceptions to these new rules and how it no longer offers alternative, portfolio loans. Rocket Mortgage is stealing {$500.00} of my monthly SSDI income based on lies, omissions, half truths and its misleading, deceptive business practices that violate the recent settlement decree in the Washington state multi-state consumer protection litigation. I am a resident of Ohio which was a party to that case.