Consumer complaint received 2019-07-31
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Rocket Mortgage, LLC (TN)

Quicken Loans violates Deed of Trust payment criteria. Full principal-interest payment made to and accepted by Quicken Loans prior to the due date. Quicken Loans chose not to apply the payment to the loan. Quicken Loans then applied a late fee in the amount of {$73.00} even though payment had been received on time. The Deed of Trust states 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by the Lender shall be applied in the following order of priority : ( a ) interest due under the Note : ( b ) principal due under the Note ; ( c ) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order which it became due. Section 3 refers to escrow payments ...

Quicken Loans accepted and cashed two checks on XX/XX/2019 that were intended for the payment due XX/XX/2019. One was labeled for the principal-interest in the full amount of {$1400.00}. The other check was for escrow in the amount of {$210.00}. Contrary to the terms of the Deed of Trust Quicken Loans did not apply the check for the full amount of principal-interest. Quicken Loans did apply the check labeled escrow even though escrow is defined as lower priority by the Deed of Trust. This is a violation of the loan contract ... 

Quicken Loans then charged a late fee for non-payment of principal-interest, Quicken had the money in hand for the full payment of principal interest but failed to apply it to the loan. Charging a late fee under this circumstance is dishonest ... 

( Payment history : XXXX XX/XX/2019 : Initial monthly payment check accepted on XX/XX/XXXX by Quicken loans. Check amount {$1600.00} Amount Quicken Loans applied to principal-interest {$1400.00}, amount applied to escrow {$210.00} ... 

XX/XX/2019 : Check accepted on XX/XX/XXXX by Quicken Loans. Check amount {$1600.00}. Amount Quicken Loans applied to principal-interest {$1400.00}, amount applied to escrow {$210.00} ... 

XX/XX/2019 : Check accepted on XX/XX/XXXX by Quicken loans. Check amount {$1600.00}. Amount Quicken Loans applied to principal-interest {$1400.00}, amount applied to escrow {$210.00} ... 

XX/XX/2019 : Two checks accepted on XX/XX/XXXX by Quicken loans. Beginning with the XXXX payment, the client began issuing separate checks for principal-interest and escrow. One check in the amount {$1400.00} was clearly marked for principal-interest. The other check in the amount of {$210.00} was clearly marked for escrow. Amount Quicken Loans applied to principal-interest {$1400.00}, amount applied to escrow {$210.00} ... 

XX/XX/2019 : Two checks accepted on XX/XX/XXXX by Quicken loans. One check in the amount {$1400.00} was clearly marked for principal-interest. The other check in the amount of {$210.00} was clearly marked for escrow. Amount Quicken Loans applied to principal-interest {$1400.00}, amount applied to escrow {$210.00} ... 

XX/XX/2019 : Two checks accepted on XX/XX/XXXX by Quicken loans. One check in the amount {$1400.00} was clearly marked for principal-interest. The other check in the amount of {$210.00} was clearly marked for escrow. Amount Quicken Loans applied to principal-interest {$0.00}. Amount applied to escrow {$210.00} ...