Consumer complaint received 2020-04-14
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Rocket Mortgage, LLC (VA)

I contacted Rocket Mortgage/Quicken Loans to obtain a conventional 15-year fixed rate refinance loan and was connected with loan officer, XXXX XXXX XXXX. After submitting a loan application, I was provided a lender estimate reflecting a 2.50 % interest rate, 0 discount points, and a {$1200.00} application fee. I was informed by Mr. XXXX that Rocket Mortgage was not offering rate locks until 15 days prior to the scheduled closing due to delays in mortgage closings caused by COVID-19. However, Mr. XXXX informed me that I would be provided 1 discount point ( 1 % of the loan amount ) to apply when locking rates. For example, if rates increased to 2.75 % by the time Rocket Mortgage was ready to lock the rate, I could use the 1 discount point to purchase a 0.25 % reduction in the rate. I was also told that the 1 % discount point would still be offered if rates stayed the same or dropped. In order to proceed with the application, Rocket Mortgage requires a {$500.00} deposit which is forfeited if the loan does not close. 


At this point, I was provided with an early disclosure package, intent to proceed document, and a lender estimate. The early disclosure package contained an affiliated business arrangement disclosure, legal disclosure summary, housing counseling agencies notice, and a risk-based pricing notice ( credit scores ). None of the aforementioned documents made any mention of the offer of 1 point to be applied to lock a rate 15 days prior to closing. 

At this point, I assumed this was an innocent omission. I called Mr. XXXX to ask for a document reciting the terms of the agreement he had recited orally. He initially stated that such a document would be provided at an undefined future time. When I pointed out that I was being asked to pay a non-refundable {$500.00} deposit to proceed, he again stated that he could not provide anything in writing. I insisted and he put me on hold. When he returned, he again stated that it was impossible to provide anything in writing attesting to his verbal commitment and that I would just need to take him at his word. 


I politely insisted that I could not proceed unless I was provided an agreement in writing or a binding rate lock. At this point, I asked Mr. XXXX why I should make a {$500.00} non-refundable commitment when Rocket Mortgage refused to put its own commitment in writing. Per the terms of the lender estimate, the interest rate, points, and lender credits can change at any time unless the rate is locked. Mr. XXXX simply stated that the matter was " above his pay grade. '' Mr. XXXX also stated that Rocket Mortgage was not offering rate locks at this time and would not do so even for an increased fee. Furthermore, Mr. XXXX stated that other lenders were either not offering rate locks or were forcing customers to pay when the loans can not close, even when if the failure to close is not the fault of the buyer. I can't speak to every lender but after reaching out to at least a dozen lenders, Rocket Mortgage was the only lender that refused to provide a rate lock. It was also the only lender that even suggested proceeding past the intent to proceed stage without a rate lock. 


Rocket Mortgage 's refusal to memorialize its commitment in writing is highly troubling. The use of a standardized lender estimate and the use of mandatory disclosures is designed to protect consumers and ensure they can meaningfully compare loan offers. Rocket Mortage 's offer essentially can not be meaningfully compared to any other lender that offers a lock because the interest rate, points, and lender credits can change without notice. Essentially, Rocket Mortgage is asking its customers to make a financial commitment in exchange for a totally open-ended promise to close a loan at an unspecified rate and unspecified fees. Rocket Mortgage 's insistence that I rely on a verbal commitment is completely inappropriate given that this transaction was for a {$410000.00} loan. 


Rocket Mortgage 's refusal to put its commitments in writing or lock rates raises the troubling prospect that they are engaging in this behavior to intentionally hide the true cost of the loan. Once a consumer is 15 days from closing, particularly on a purchase loan, a customer may simply not have the flexibility to find a new lender. This is precisely why these values can not change once the rate is locked. Moreover, absent a written commitment to provide the XXXX discount point, there is no meaningful recourse for the customer if the rates and fees do increase. At the very least, I can see no legitimate reason why Rocket Mortgage would refuse to even provide such an agreement in writing. In other words, my concern is that this may be a bait-and-switch offer : make a highly attractive offer to lure the customer ; force the customer to commit {$500.00} to proceed with the loan ; and substantially increase the costs 15 days prior to closing, at which point the customer has few good options. 


The above referenced phone call occurred at XX/XX/2020 at approximately XXXX EST.