Consumer complaint received 09-05-2017 about Mortgage (Conventional home mortgage) with QUICKEN LOANS, INC. (VA).
Issue: Closing on a mortgage

Complaint: On XXXX XXXX, XXXX I assisted my daughter in applying for a home mortgage loan with Quicken Loans. She had just moved to Virginia for a new job and wanted to purchase her first home. I offered to help her through the loan process. 

We had contacted several mortgage firms locally and each had been clear as to what the base interest rate was and the ability to buy down the rate with points. We had no desire to buy points! So I suggested to my daughter we contact Quicken Loans and we did so via her cellphone using the external speaker. The lady representative from Quicken Loans who answered was XXXX XXXX. 

I explained our situation and asked what their interest was. She immediately told us 3.99 % and said " how does that sound? ". Since we had been give previous rates in the area of 4.25 % locally we thought this rate was good. She quickly went on to explain this was a 30 year fixed conventional rate requiring only 10 % down. Then she said my daughter would not have to pay any PMI and the amount needed to close would be approximately {$21000.00} ( including down payment of {$18000.00} ). 

NEVER did she mention anything about this rate being available BECAUSE my daughter would be paying XXXX points to buy down the rate to get this 3.99 %. If she had done so we would have said no thank you and moved on ... as we had done with the local offers already provided. 

I then allowed my daughter to complete the application process on her own with the understanding that she had secured a good/reasonable interest rate on her loan for her first home. 

It was at the closing for her home purchase on XXXX XXXX, XXXX that I discovered this matter of points being disclosed at a cost to my daughter of about {$3700.00}! 

It is my position that this representative for Quicken Loans acted in a sly, deceitful manner and I believe actually illegal with regards to proper disclosure of the loan details at the outset of the loan process. 

During the time between the initial application and the closing date my daughter was subject to an avalanche of forms, questions and inquiries with NEVER a verbal explanation as to the basis for the 3.99 % rate. As a first time home buyer she deserved a full and clear explanation of what she was accepting! 

After the closing I then immediately filed a complaint with Quicken Loans on behalf of my daughter and was told my complaint had been forwarded to the Executive Office Team.  Two days laters I was contacted via email by a XXXX XXXX who had reviewed my complaint. Her email reply was both factually untrue and at the same gave absolute evidence to the substance of my complaint. 

First, she stated that she had reviewed the communication between XXXX and my daughter and I and determined that there had been a very in-depth conversation about the total costs associated with a rate of 3.99 % ... this is a lie. I have attached a copy of the scratch notes I made during our conversation with XXXX that evening and as you can see there are NO notes about points! As I previously stated had there been a mention of points I would have said we were not interested in paying points just like I did with the three local mortgage agencies. 

Second, and more telling, was her reply in the email that stated " I did not find in communication that the closing costs were broken down or questioned as to whats included within the estimated XXXX. I do believe that this is an area of opportunity for us as a company to provide that additional clarity ; Instead of expecting our clients to read the disclosures we provide prior to their signature/acknowledgement ''. That statement alone supports my position of the deceitful presentation with the sole purpose of the loan sales representative to secure a sell. I have attached a copy of this email as well for your records. 

In summary, I reiterate that Quicken Loans acted in a deceitful and unlawful manner in selling this loan without a full disclosure of the costs associated to a young, female first time home buyer. I believe that the monies paid in points should be reimbursed and the fixed loan rate for 30 years be kept at 3.99 %. 

Sincerely, XXXX XXXX XXXX XXXX Cell : XXXX XXXX XXXX XXXX ( actual loan applicant ) P.S. I am having trouble attaching one of documents in support of this complaint. It is the one that shows my notes from the initial phone conversation with Quicken. Please contact me with another method for getting this document to your attention.

Company response to consumer: Closed with explanation