Consumer complaint received 2025-11-13 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Rocket Mortgage, LLC
State: VA

Complaint narrative:
On XX/XX/XXXX, I completed a cash-out refinance with Rocket Mortgage , LLC. Prior to that, I held an FHA XXXX loan with XXXX XXXX XXXX XXXX, originated on XX/XX/XXXX, with a payoff balance of {$87000.00}. The refinance converted this loan into a conventional XXXX mortgage with Rocket Mortgage , LLC, in the amount of {$170000.00}. 

My new monthly payment totaled {$1500.00}, consisting of : Principal and Interest : {$1200.00} Escrow for Taxes and Insurance : {$300.00} The Welcome Letter from Rocket Mortgage stated that my initial escrow balance was {$1600.00}. According to my Closing Disclosure ( signed XX/XX/XXXX ), escrow funds were collected as follows : XXXX months of Homeowners Insurance : {$690.00} XXXX months of Property Taxes : {$890.00} XXXX months of Utility Taxes : {$57.00} These amounts matched the beginning escrow balance listed on the Welcome Letter. 

On XX/XX/XXXX, Rocket Mortgage conducted an XXXX XXXX. The analysis determined : Projected Minimum Escrow Balance : {$610.00} Required Minimum Escrow Balance : {$610.00} This resulted in an overage of {$0.00}, for which Rocket Mortgage issued a refund check. I was advised that my monthly payment would remain {$1500.00} until the next analysis. 

However, in XX/XX/XXXX, Rocket Mortgage made four tax disbursements from my escrow account : XX/XX/XXXX {$670.00} XX/XX/XXXX {$85.00} XX/XX/XXXX {$680.00} XX/XX/XXXX {$48.00} ( labeled Special Assessment ) These disbursements caused an escrow shortage, which triggered a new analysis dated XX/XX/XXXX. The results showed : Projected Minimum Escrow Balance : - {$270.00} Required Minimum Escrow Balance : {$640.00} Escrow Shortage : {$920.00} As a result, Rocket Mortgage increased my monthly payment to {$1600.00}, effective XX/XX/XXXX, with the following breakdown : Principal and Interest : {$1200.00} Escrow : {$320.00} Shortage Repayment : {$76.00} On XX/XX/XXXX, I proactively paid my XX/XX/XXXX mortgage payment of {$1500.00} through the Rocket Mortgage app and received confirmation. 

On XX/XX/XXXX, upon reviewing my online statement for XX/XX/XXXX, I noticed that my next payment ( due XX/XX/XXXX ) had increased to {$1600.00}, without any explanation. At that time, the XX/XX/XXXX escrow analysis had not yet posted, and I had received no prior notification of any disbursements or account changes. 

When reviewing my transaction history, I discovered the four unexpected tax payments, which caused confusion and concern. In over XXXX years of homeownership, I have never experienced multiple tax disbursements in a single quarter without notice or justification. 

On XX/XX/XXXX, I contacted Rocket Mortgage to request clarification. I was told that an escrow analysis had occurred, but representatives could not explain the reason for the multiple tax payments. I was informed that the issue would be escalated to the Tax Department for review. 

The analysis posted to my portal on XX/XX/XXXX, but still provided no clear explanation for the disbursements or the resulting shortage. Over the following weeks, I made multiple calls and was repeatedly told that the issue was under investigation. 

On XX/XX/XXXX, I received a call from Rocket Mortgages corporate office confirming that an error had been made and that further investigation was underway. Several supervisors subsequently followed up, yet no resolution was provided. Instead, I was told I remained responsible for the higher payment and that, if needed, I could apply for hardship assistancedespite the shortage being caused by Rocket Mortgages mistake. 

On XX/XX/XXXX, I received an email from a Rocket Mortgage Executive Escalation Specialist confirming mismanagement of my escrow account funds. The message stated in part : " I hope you are well. I am following up with an update regarding your taxes after our tax team completed their review. There were a few areas we had to dig into to figure out what happened and appreciate your patience and understanding while we made sure to thoroughly research. 


In review we confirmed the XX/XX/XXXX [ redacted ] City taxes were received after the XX/XX/XXXX due date. A fee was charged in the amount of {$85.00} and since it was our responsibility to ensure taxes were received on time, we are responsible for the fee. Unfortunately, it was erroneously paid from your escrow account and we are in process of getting a refund applied. You will see this reflect in your escrow account in approximately XXXX weeks. 


Additionally, we confirmed a refund of {$670.00} was applied on XX/XX/XXXX because this was the amount due for the XXXX taxes and was already paid. The correct amount was issued in the amount of {$680.00} the same day. The payment of {$48.00} was for the storm water bill and issued correctly. 


The appropriate feedback and coaching has been provided to the team members responsible. I apologize for the frustration and inconvenience this experience has caused you. We will run a new escrow analysis once the refund is applied to your escrow account for the {$85.00} and you will receive an email when it is ready to view online. 


If you have any questions or would like to discuss further, please do not hesitate to reach me. 

Kind regards '' Despite this admission, as of XX/XX/XXXX, no new escrow analysis has been completed, even though Rocket Mortgage has received both the {$670.00} and {$85.00} refunds. 

Rocket Mortgages mishandling of my escrow accountby failing to pay property taxes on time, improperly using escrow funds to cover their own late fees, and neglecting to correct the account promptlyconstitutes negligence and a breach of the escrow agreement. 

Their actions have caused financial hardship, stress, and confusion, as I was unjustly charged for a shortage and subjected to an increased mortgage payment. The companys ongoing lack of transparency and resolution has left me with no choice but to pursue refinancing with a different lender. 

Furthermore, I have yet to receive clarification regarding which department or employee was responsible for the original error, despite assurances that training measures had been implemented. This lack of accountability raises serious concerns about Rocket Mortgages internal controls and compliance with escrow management regulations.

Rocket Mortgages delay in paying my property taxes, misapplication of escrow funds, and failure to promptly correct their own admitted errors have resulted in an unjustified payment increase, financial stress, and a clear breach of contractual and fiduciary duty.

I am requesting a full and immediate correction of my escrow account, reimbursement of any overcharges, and written confirmation that I will be made whole and compensated for the undue hardship, mental anguish and turmoil Rocket Mortgage, LLC., caused me during this time, where Americans are experiencing a Government Shutdown, Food Disparity , and other factors that Holidays and an extremely stressful and time consuming error can cause.

I have included attachments to help the CFPB in reviewing the statement I have provided regarding this matter.

Company response to consumer: Closed with explanation