Consumer complaint received 2021-07-27
Product: Mortgage — VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Rocket Mortgage, LLC (AK)

This is a re-opening of CFPB complaint # XXXX due to Quicken Loans misstatements/lies in response to my initial complaint in their XX/XX/XXXX letter. My husband and I initially applied for a cash-out-refinance on our home at XXXX XXXX XXXX XXXX XXXX, XXXX, AK XXXX with Quicken Loans on XX/XX/XXXX. We were promised a quick closing of 2-3 weeks by Senior Power Banker, XXXX XXXX XXXX on the initial call of XX/XX/XXXX. 

We were placed in a 15 yr. VA loan at XXXX XXXX instance, comparable to what we currently have with XXXX at 2.25 % which had closed on XX/XX/XXXX. We were approved for this loan on XX/XX/XXXX, sent Quicken Loans a copy of our Loan Document with PrimeLending and were sent an approval letter from Quicken Loans dated XX/XX/XXXX. On XX/XX/XXXX I spoke with XXXX XXXX, Client Relations, who told me I would not be granted access to the tape recordings of the XX/XX/XXXX through XX/XX/XXXX due to the recordings being work product. The specific lies I wanted to refute by listening to the recordings were : 1. XXXX XXXX promise to close the loan within 2 - 3 weeks promised almost immediately on the initial call. 

2. XXXX XXXX desire to place my husband and I in a VA loan to to the exclusion of all other loan products promised on the initial call. 

3. I provided XXXX XXXX with all information pertinent to our current VA loan with XXXX including the closing date of XX/XX/XXXX and the first payment date of XX/XX/XXXX in the initial XX/XX/XXXX call. Ms. XXXX misinforms the CFPB when she states in paragraph 4 that all the information was obtained later and that XXXX XXXX missed opportunities to question us about the loan. I do agree that XXXX XXXX did not question us, however, I was forthcoming about the particulars of our current loan on the initial call and provided all information pertinent : loan closing date, initial payment, principal payments made prior to initial payment being due ; statements of XXXX loan, et al. Also, it was XXXX XXXX decision to write a VA Loan for my husband and myself to the exclusion of any other type of loan. 

4. XXXX XXXX lied in her XX/XX/XXXX letter on page 2, second to the last paragraph, in which she states : We would also like to note that we were unable to find any direct communication telling you to lock in your interest rate. 

In fact, on XX/XX/XXXX, I was sent a letter that stated : Your interest rate is currently NOT locked, sometimes referred to as floating. This means your interest rate is not guaranteed for any period of time and is subject to change without advanced notice. Please contact your Mortgage Banker to lock in your interest rate at any time prior to the preparation of your closing documents. 

This directly contradicts what Ms. XXXX wrote in her XX/XX/XXXX letter. When I spoke to XXXX XXXX on XX/XX/XXXX, she stated that she would have to agree with Ms. XXXX XX/XX/XXXX letter that it did not contradict. When I asked Ms. XXXX what exactly did the highlighted statement mean, she said it meant just what it stated, that I should contact my Mortgage Broker to lock in my interest rate at any time prior to the preparation of closing documents after the title report was received. I told her thats not what the letter stated. At which time, Ms. XXXX stated she had to go to a meeting and that talking to me was not going to result in any opinions being changed. It appears, to me, that Quicken Loans cant admit when they are wrong! 

On XX/XX/XXXX, XXXX XXXX, Quicken Loan Specialist, stated our loan with XXXX was not seasoned and that XXXX XXXX should not have written a VA mortgage. XXXX XXXX rewrote our loan to conventional with estimated additional {$1700.00} in closing costs. 

I complained to XXXX XXXX, Director, XXXX  XXXX. He stated that it was a mistake to have written our loan as a VA loan. Mr. XXXX told me Quicken Loans had gone to great lengths to get the 2.25 % interest rate and to get the more than reasonable closing costs costs but the fact that Quicken Loans would not lock the interest rate. I noted that Quicken Loans own website notes that mortgage rates are subject to change and that borrowers should lock in their interest rate as soon as possible. Mr. XXXX was unimpressed by our plight and stated that we could refuse to process the loan. It was his feeling that other conventional loan clients would clamor for the rate and closing costs we received. He agreed that we should not have been told that we would close in 2-3 weeks. 

Not only has Quicken Loans refused to mitigate the damage to us caused by the abrupt increase in closing costs caused by a mistake Quicken Loans made by putting us in the wrong financial product, and the misstatement made to us about the quick closing, Quicken Loans is refusing to take their own advice, as stated on their website, and lock us into a lower rate, preferring instead to let the rate float, hoping, I suppose that the rate will increase and we will be stuck with a higher rate at closing. This is totally unacceptable to us and indicative of a deceptive, duplicitous mortgage lender. 

I contacted the Consumer Financial Protection Bureau on XX/XX/XXXX and was informed that Quicken Loans refusal to lock rates for Alaskan consumers may be illegal. I contacted Banking and Securities in Alaska and they are currently looking into this matter. 

It is my husband and my feeling that Quicken Loans has been deceptive from the inception of this loan process. XXXX XXXX indicated to me during our telephone conversation that no Alaskan resident is receiving rate locks until the title documents are prepared and finalized which can take over five weeks or more. This fact is not advertised on Quicken Loans website and is not clearly evident anywhere you look at Quicken Loans. 

Quicken Loans should clearly post on their website that they will not lock Alaska consumers interest rates until the title documents are received. This would adversely impact any consumers willingness to deal with Quicken Loans while this punitive policy remains in place. This punitive policy virtually guarantees that Alaskan residents will receive a higher interest rate than what was quoted at the time of application. 

The excuse Quicken Loans gave to me as to why this policy was enacted against all Alaskan consumers was that the title work in Alaska was taking too longover five weeks timemaking the 2-3 week closure promised me when I first spoke with XXXX impossible, and which you neglected to address in your XX/XX/XXXX letter. The fact that Quicken Loans will not allow me to see their work product or transcripts of tapes guarantees Quicken Loans is being deceptive and hiding the version of events as Ive recorded them. 

Since Quicken Loans does not sell any of its loans, but carries all of its paper, it is apparent the fact that you are not locking in rates for consumers in Alaska serves only to benefit you, Quicken Loans. Quicken Loans does not want to end up losing money on carrying loans with a lower rate of interest than what the market currently offers. This is self-serving financial decision on Quicken Loans partand Quicken Loans can not even be honest about it. This is not looking out for the client. Every other mortgage lender is still offering to lock rates for Alaskan borrowers and waives the extension fee should the title work take an excessive period of time! 

Not only is Quicken Loans a predatory lender, it lies with impunity! This is not a way to conduct business in the mortgage industry. I am sending you a copy of Alaska Consumer Protection Act, Alaskas Unfair Trade and Practices Act, ( AS 45.50.471-AS 45.50.561 ), so you can see for yourself how Quicken Loans has also violated Alaskas Unfair Trade and Practices Act by lying to consumers in Alaska. 

Bear in mind that the CFPB has already acknowledged that Quicken Loans decision to not lock rates for Alaskans may not be legal. I anticipate a copy of all recorded conversations regarding this loan transaction be sent to me as soon as possible. Further, when substantial monetary mistakes are made in estimating and putting clients in the wrong financial product, consumers should not bear the financial burden of the companys mistake. Quicken Loans should. The fact that Quicken Loans could not offer a {$1700.00} credit to get our closing costs more in line with the original product offered and approved, gives indication not only of a predatory lender but of a deceptive one as well. 

It is therefore our contention that Quicken Loans has violated Alaskas Consumer Protection Act ( AS 45.50.471-AS 45.50.561 ), in that Quicken Loans willfully and knowingly violated the Alaskas Unfair Trade and Practices Act, in that Quicken Loans was misleading and deceptive in stating that they could close this loan in 2-3 weeks which they had no intention of nor probability of doing given the current housing market in Alaska. Quicken Loans also made a gross error in putting us in a financial product ( a VA loan ) and conditionally approving us for that product, then telling us it was their mistake, it should never have been done. Quicken Loans then refused to offer us any concessions for their mistake. Quicken Loans was also deceptive and misleading in indicating approval this VA loan, that was ultimately not able to be finally approved and stated that approval of the loan was a mistake then not taking responsibility for conditionally approving that financial product by issuing credits to us to make us financially and emotionally whole. 

Due to the misleading, deceptive, abusive, nature of Quicken Loans dealings, we desire that Quicken Loans stop processing our loan application immediately. In addition, due to the deceptive, misleading and abusive nature of Quicken Loans violations, Quicken Loans should pay us treble the application fee plus treble the difference of closing costs between the original and final loan estimate or {$5800.00}. 

If you should have questions, please do not hesitate to contact me at XXXX.