Consumer complaint received 2016-11-03
Product: Mortgage — VA mortgage
Issue: Credit decision / Underwriting — 
Company: Rocket Mortgage, LLC (CA)

My wife and I just closed on a new home purchase. When it came time to choose financing for our new house, as a XXXX XXXX veteran, I knew that it would behoove us to utilize my VA loan benefit. We ultimately chose Quicken Loans to provide our financing, with the understanding that the terms of the loan would be a {$670000.00} loan amount, 3.25 % interest rate, .25 % origination fee, and a 1.25 % closing cost credit. That was the agreement and understanding from the very beginning with Quicken Loans. 
Upon receipt of our first and second loan estimates ( LE ), we noticed each time the LE 's reflected a 1 % origination. When we questioned XXXX, he consistently dismissed the LE 's stating " do n't worry about what it says, the LE will be updated when the rate is locked ''. Per his explanation, we understood this to mean it would change to the agreed upon .25 % origination fee, and I confirmed this was my understanding via email. XXXX replied several times in agreement. The responses received from XXXX consistently confirmed that I would expect to see .25 % origination fee once the rate was locked, and to disregard the origination fee of 1 % reflecting on the current LE 's, as the final LE XXXX issued, once the rate was locked, would reflect the agreed upon .25 % origination fee. 
XXXX advised us in the beginning that due to the long escrow, we would wait to get within 30 days of closing to lock the rate, otherwise we would have to pay an additional .25 % for an extended rate lock period. We wanted to utilize as much lender credit as possible towards our closing costs, so we were in agreement that we were happy to wait it out and not pay the additional fee. As the closing date approached the 30 day out mark, I contacted XXXX get our rate locked. Rather than lock the rate at that time, he offered us a 1.56 % lender credit, in lieu of the originally agreed 1.25 %, if we did a 15 day rate lock. XXXX and I were on board, as an additional .31 % in lender credit would only further offset our closing costs. 
Finally, we were at the 15 day closing window, and ready to lock our rate. We expected, based on many prior emails and conversations with XXXX, that we would be getting a 3.25 % interest rate, with a .25 % origination fee, and a total lender credit of 1.56 %. When I reviewed our re-disclosed LE now that the rate was locked, the origination fee still reflected 1 %, and not the agreed upon .25 % origination fee. When I questioned XXXX why the origination fee was still reflecting 1 %, he first acknowledged that there was a mistake. After he " looked into '' why the final re-disclosed LE had a 1 % origination fee, he came back to us and said it was a " misunderstanding '', and that the origination was in fact 1 %. This is after 2 1/2 months of being assured the previous LE 's would be adjusted to .25 % origination fee once the interest. 
The bottom line is, we were talked into holding out for a 15 day rate lock under the premise we would get a larger lender credit, and that only a .25 % origination fee was to be deducted from that credit. The remainder of the lender credit would have then covered the majority of our closing costs. Instead, this was a set up to talk us into a rate lock window so narrow that we had to proceed with XXXX, as we were left with no time to seek alternate financing, and at the same time increasing our interest rate. Because we believed what XXXX was telling us all along to be true, we now have a higher monthly payment because this was the only option for us to get the larger lender credit in order to cover to cover the fees that we were always lead to believe would be covered. More unsettling, our credit qualified us for the lowest tier interest rates.