Consumer complaint received 2021-07-05
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Rocket Mortgage, LLC (TX)

I am a loan applicant with 1040 income, 1099 income as a XXXX XXXX XXXXXXXX  and 1065 for two rental properties under an LLC ( showing annual rent and a somewhat breakeven annual cash flow ). My 1040 income is over {$180000.00} a year, and my credit score is over XXXX. I applied for a loan amount of {$490000.00} to buy a new construction home with a purchase price of approximately {$720000.00}. For down payment I have {$160000.00} in proceeds from the sale of my existing property and the remaining is held in cash in my checking and savings accounts for which I have provided the statements. I had submitted the loan application to XXXX XXXX on XX/XX/XXXX, and closing date was scheduled for XX/XX/XXXX. 

I received email on XX/XX/XXXX from a RocketXXXX address, which is an account with Quicken Loans setup by XXXX XXXX on my behalf. I called the XXXX XXXX to ask what was going on and it was explained to me that XXXX XXXX does not have underwriting in-house for purchase loans. As a result of this, XXXX XXXX outsources their underwriting process to Quicken Loans via the RocketXXXX program. I was surprised to learn about this and more surprised that it was not disclosed during the loan application process. I expressed my disappointment to the loan officer and mentioned to him that it should have been disclosed that the loan underwriting process would be outsourced. Also, it is quite clear that the underwriting process was severely delayed since we were only 5 days from the originally scheduled closing date. 

Even more surprising, the loan processor informed me on XX/XX/XXXX that the underwriter returned comments that my DTI was too high. I was then given the option to reduce the loan amount to {$450000.00} to qualify. Due to the time constraint to close, and because I had enough cash in savings to add to the down payment, I agreed to increase my down payment amount by {$37000.00} and reduce the loan amount. However, after several days it did not appear that the DTI issue had been resolved. I sent several emails and made multiple phone calls to XXXX XXXX to for updates but for roughly 4 days I was getting out of office notifications returned stating that employees were on vacation. As a result, the closing date deadline was missed. 

Because I knew it was impossible for my DTI to be high unless there were errors in the calculations, on XX/XX/XXXX I requested for a secondary review of my loan file and a breakdown of the DTI calculations. I was emailed a breakdown and upon review I immediately realized multiple calculation errors. Essentially, the underwriter had erroneously double counted and did not add back the mortgage interest and taxes ( even though they are escrowed with the mortgage payment ). 

In addition, the UW refuses to consider all of my income from the LLC by only using income based on my 50 % ownership but only on half of the total assets under the LLC. Not considering all of my legitimate income unfairly increases my DTI and invariably unqualifies me for the loan. 

I have noted these errors and I have returned my comments back to the loan processor. I received email back that my comments have been forwarded to a solutions underwriter, however I am yet to hear back about that review. When I emailed the loan processor this afternoon, I received an out-of-office reply that she is out on vacation for the XXXX XXXX holiday and will return on XX/XX/XXXX. Problem is that my rate lock expires on XX/XX/XXXX ( today ). 

The worse part of all this is that, as a result of the Lender missing the closing date of XX/XX/XXXX, I needed to move my family to an XXXX ( because were already under contract to sell our existing home ). The XXXX is costing us $ XXXX/night. In addition, we have needed to move our things into storage which is also costing us storage fees. We are 7 days past deadline, and I still dont know if the DTI issue is resolved. 

The next scheduled closing date is XX/XX/XXXX which is only 3 days from today. Unfortunately, I have not received any updates from either Quicken Loans and/or XXXX XXXX  on the status of my application, and there is no indication that the Quicken Loans underwriter will correct the errors and approve the loan. This has been a gross mismanagement of an otherwise straight forward loan application. We are currently at risk of loosing the purchase contract on the new home if we can not come to closing with the necessary funds and risk being homeless. I can not start a new process with a different lender because it will take another 30 days to close and we can not afford the cost impact of an additional 30 days. Please help us, we are desperate!