Consumer complaint received 2026-05-13 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Rocket Mortgage, LLC
State: GA

Complaint narrative:
Since XX/XX/year>, Rocket Mortgage has repeatedly failed to apply my payments in accordance with my instructions. In XX/XX/year>, my payment of {$3100.00} was applied as the XXXX amount due ( {$1400.00} ), then as a prepayment for XXXX ( {$1400.00} ), with the remaining amount applied to principal. In early XXXX, I contacted support through the Rocket Mortgage website and directed Rocket Mortgage to reallocate the payment to apply {$1400.00} to the XXXX payment and {$1600.00} as additional principal, which was processed in a timely manner. In XX/XX/year>, my payment of {$3800.00} was applied as {$1400.00} for the XXXX payment, {$1400.00} as a prepayment for XXXX, and the remainder as additional principal. In early XXXX, I again contacted support through the Rocket Mortgage website and directed that all excess funds be applied as additional principal ( not as a prepayment ). I also asked how to prevent this error from recurring, and the agent represented that the payment hierarchy had been updated so that all excess funds would be applied to principal instead of prepaying the following month. Despite that representation, the problem continued. In XX/XX/year>, my payment of {$4300.00} was again applied incorrectly : excess funds were applied first as a prepayment for XXXX and then to principal. I contacted support and directed Rocket Mortgage to correct the payment so that all excess funds were applied as additional principal ( with no prepayment ). Support again represented that my payment hierarchy would be updated so that all excess funds would be applied to principal rather than to a prepayment. I would later discover that assurance had not been honored. For my XX/XX/year> payment, I scheduled the payment directly through the Rocket Mortgage website to avoid further misapplication. I expressly directed that, of my {$4800.00} payment, {$1400.00} be applied to the XX/XX/year> payment and the remaining {$3300.00} be applied as additional principal. This payment was processed correctly. My XXXX mortgage statement dated XX/XX/year> reflected a principal balance of {$4200.00}. I also requested an official payoff statement on XX/XX/year>, which reflected the same principal balance ( to be paid off on XX/XX/year> ). As of XX/XX/year>, all prior errors had been corrected, and my principal account balance was accurate. On XX/XX/year>, without my instruction or consent, Rocket Mortgage reversed multiple payments and applied some of the excess funds as a prepayment for XX/XX/year>. As a result of Rocket Mortgages unilateral change, my remaining principal balance is now {$4900.00}, {$680.00} higher than previously stated. This is a recurring error, not a one-time mistake. Rocket Mortgage has been notified multiple times, and representatives have repeatedly stated that the payment hierarchy had been updatedyet Rocket Mortgage continues to misapply payments and reverse principal allocations. As of XX/XX/year>, Rocket Mortgage is unable to correct this mistake. Support currently states that the best they can do is get me within approximately {$35.00} of my XX/XX/XXXX principle balance. I am now financially responsible for Rocket Mortgage 's decision to not review my account to verify errors had already been corrected, and for their decision to continuously ignore my repeated instructions on how to handle my payments. Rocket Mortgage is keeping the principal balance higher than it should be and increasing interest accrual over time. It is unlikely that this issue is isolated to myself, and that others are experiencing it as well. While the accrued interest is small in my case, if you apply this error across other accounts, Rocket Mortgage is probably profiting quite a bit off of their choice to ignore instruction ( a clear violation of Regulation X ). Rocket Mortgage reversing and reapplying a payment also calls into question the accuracy of Rocket Mortgages payment processing and account records.

Company response to consumer: Closed with explanation