Consumer complaint received 2023-03-16
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: Rocket Mortgage, LLC (SC)

Greetings, Long story short : I never told the lender my home was worth the estimated value they decided on, I was misled about the loan costs and how this estimated value would affect these loan costs. 

On XX/XX/XXXX I agreed to proceed on a locked rate of 4.5 % with a loan discount fee of XXXX $ ( {$7700.00} ). This rate lock was valid through XX/XX/XXXX. Two weeks later, On XX/XX/XXXX, I received a loan estimate of which origination charges increased to 7 % of Loan Amount Points costing {$20000.00} and had me bringing over $ XXXX to closing on a cash out refi. I called the company they said no that was an error and estimates are just that estimates not final figures. 5 days later on XX/XX/XXXX I received another redisclosure on a locked rate of 4.5 % with a loan discount fee of 3.4 % ( {$10000.00} ). Three days after that XX/XX/XXXX I received another redisclosure on a locked rate this time of 4.65 % with a loan discount fee of 3.125 % ( {$9300.00} ). On that same day I received my initial closing disclosure in preparation for closing with these same figures. I phoned the company and told them the rate and the discount fee numbers are wrong as per what I agreed to on XX/XX/XXXX. I was told they would make the corrections and resend. Later that evening at XXXX pm i received another redisclosure package on a locked rate of 4.5 % with a loan discount fee of 3.5 % ( {$10000.00} ). I phoned them again to tell them these numbers were still not according to my disclosure I agreed to and received on XX/XX/XXXX. A closing team member told me it was due to the increase in my loan amount which was done on XX/XX/XXXX for an increase in loan amount of {$9000.00}. I asked him so because I took out an additional {$9000.00} its costing me and extra {$2700.00}? I also mentioned to him I received four other disclosures prior to me increasing my loan amount all with different figures so that couldn't be the reason. Dumbfounded he said let me speak with your loan officer and I will have him reach out. I was then informed by my loan officer that the increase in the discount fee was due to my home appraising for less than the estimated value. PS My home appraised for $ XXXX at 67.2 % LTV well below maximum LTV for conventional loan. He said it was because my home appraised for less than they estimated which they decided was $ XXXX. I asked where he got that value because I never told him my home was worth that much. My estimate was XXXX. As i was right it came in at $ XXXX. When I gave him " my '' estimated value of XXXX, he said we would estimate lower than that somewhere around XXXX to be on the safe side, still not mentioning that this could affect my loan cost. I have no idea where they got the estimated home value of $ XXXX as I know my home was not worth that much. Even so, I do not know how that would play into a rate lock and as the consumer not be informed of such potential increase in loan costs until within days of closing. I offered to split the difference of the overage I was being charged and he said they could not discount the loan any further because they already were giving lender credits of over $ XXXX which I did not see anywhere on the closing disclosure, it actually said XXXX in lender credits. I do not believe I was properly informed of costs in process and resulted in me paying a ton of extra fees in the process.