Consumer complaint received 2021-03-03
Product: Mortgage — VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Rocket Mortgage, LLC (IL)

I initiated a loan transaction with Quicken on XXXX XX/XX/2021. At that time, I filled out the application on line with my loan officer XXXX XXXX. After completing the application, I signed the documents as requested and reviewed the task list of items that I needed to provide. At that point, I noticed it strange that they were requiring income documentation based on this being a streamline refinance. I called for clarification as I have a little bit of a complex income documentation situation and it's close to tax time, so it would be an undue amount of inconvenience and effort to do this and I would have gone with a different lender. I was sure at that time that it was an error and it would be fixed on the back end ( there is a voice call confirming this ). 

I then preceded with the loan and received a call several days later denoting that I would also need an appraisal on the file. I questioned that at the time but was told that it was only an external appraisal and then it wouldn't slow down the process. Nothing was mentioned at that time regarding my need for income documentation, so I assumed it was being resolved. I received a call today asking me to fully document all of my income. Being a little bit confused, I reached out for an answer and was told by Quicken 's operations people as well as a stand-in for my loan officer who for some reason was unavailable that under no circumstances for streamline loans in Illinois is income documentation waived. I myself have lending experience know that income documentation is not required in IL. So what this tells me is this is Quicken 's interpretation and not a true reflection of some Illinois statute or anything that is in the VA pamphlet which governs the streamline refinance. 

None of the people with whom I spoke had any familiarity with VA pamphlet 27-6, which is the governing credit guidelines for VA loans. VA 27-6 has no reference to ability to repay because it's not a VA requirement. It's a requirement of Quicken Loans and reflects how you are interpreting the ability to repay in Illinois. 

o I understand many lenders have overlays, but I SPECIFICALLY asked about these requirements and was assured they were in error and not an issue. 

o Now because of this mistake and the time that's transpired between when I put in my application and now, I can no longer get a competitive rate that matches the rate that I locked with Quicken. Mortgage backed securities have moved and rates are unquestionably higher now to the tune of XXXX of a point. So what they've essentially done is made a mistake put me in the position of either having to essentially do a fully documented loan instead of an IRRRL or spend thousands of extra dollars over the life of my loan because I have to go with a lender who is interpreting the IRRRL the way that the VA meant it to be. For illustrative purposes, the difference for me to go elsewhere will cost me : XXXX ~ $ XXXX ~ $ XXXX years ~ $ XXXX of the loan I also want to address some of the condescension and patronizing treatment that I dealt with from the lowest level to the Regional Vice President with whom I spoke. 

o I was consistently treated like somebody who didn't know what I was talking about. I was consistently told I'm sorry with no resolution. Understand that this was after the Regional Vice President had listened to the voice recording of my call with the original loan officer that gave me the bad information. 

o The degree to which I was insulted when that same person later told me that they may be hiring and have openings. For some odd reason, he must have felt that I would want to subject my clients to this was embarrassing and insulting or that this would be some incentive for me to not care about my own loan. 

o Finally, I was contacted by XXXX XXXX, a Director, before XXXX XXXX, the Regional VP. The problem is, she contacted me and did not disclose that anyone else was on the phone. When beginning to discuss the issues, I was ambushed by his presence. I do not know what is acceptable at Quicken, but when I am doing anything more than a 2 person call, I acknowledge and introduce the other person not only as a courtesy but to protect my company from possible questions as to why the person did not do so. 

All in all, the answers seemed to be : You dont know anything sir. 
XXXX, you know something, but you dont know about how it works in IL XXXX, you understand IL but we screwed up, sorry, take it or leave it. We understand that withdrawing your loan will cost you money and a worse rate, but sorry. 

I am now going from expecting to provide no income documentation which is the norm for an IRRRL to needing to provide two years of business and personal tax returns ( 8 full returns and schedules ), four W-2s and 2 paystubs or pay substantially more for my loan.