Consumer complaint received 2019-01-07
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Rocket Mortgage, LLC (VA)

Quicken Loans Executive Mortgage Banker contacted me on Friday, XX/XX/XXXX around XXXX ET. We spoke about the details of my loan request, amount, percent of down payment, amount to be financed, my desire to not have any points to pay, and my desire to do a borrower paid PMI so I'm making monthly payments of the PMI rather than it being baked into the interest rate. I also provided him the credit score that was used by the mortgage company that pulled my credit earlier in the week. I asked him to email me the rate and PMI he was getting, along with fees, so I could have something to reference as I shop for rates. Below is what he sent me at XXXX ET that morning. 

Hello XXXX, It was great speaking with you today. Per our conversation, we discussed the following option : Purchase Price- {$570000.00} Down Payment- {$28000.00} ( 5 % ) Rate-4.375 % PMI- {$100.00} per month Origination- {$1100.00} ( Total Closing Costs could be anywhere from 3.5 % -4 % ) This is based on what we discussed and can change depending on where the market is at. Once I get everything in the system with a credit report I will know more of an exact figure. Please let me know if you have any additional questions! '' Today, XX/XX/XXXX, I spoke to him again and told him I have a ratified contract and am ready to lock in my estimate, however, I need to know if the rate has changed since Friday and if he can help bring the origination cost down since there is a competitor who is charging quite a bit less. He said he would contact me at XXXX ET today with the new rate, if it had changed. He called at XXXX ET on the dot. Very punctual. When we spoke, he said the rate had not changed. I asked him about the origination fee and he kept telling me, Friday and today, that he needed to run my credit to get an approved packet over to this Director. An approved packet should NOT be required to talk about origination fees that are wholly owned by the lender. Despite that, I asked him to at least have the conversation with this Director to see if they would be open to moving on the origination fee, considering I'm getting a quote with quite a bit of a lower rate. 

I called him back at XXXX ET today to ask him if he had an update on the origination fee. He didn't and said the same thing again. So, rather than continue trying to get through this without letting them run my credit, I went ahead and gave him my social security number and income so he can get the origination fee negotiated on my behalf. 

Instead, he calls me back at XXXX ET to tell me the interest rate has changed. At XXXX ET the same day, he told me the rate had not changed. I don't understand how that happens. His statement now is that I need to pay points in order to buy the rate down to the 4.375 %, an opportunity for them to make money. I've included the details of the additional interest they will collect because of the rate difference so that's yet another opportunity for them to make money. 

These deceptive practices are the reason the CFPB was created. I can not believe they continue.