Consumer complaint received 2025-04-22 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Rocket Mortgage, LLC
State: TX

Complaint narrative:
This is in regards to the mortgage home insurance and calculated escrow with Rocket Mortgage. I received a letter on Monday XX/XX/XXXX that my mortgage payment to Rocket Mortgage would be going up 300 % compared to last month. This was because Rocket Mortgage had paid a 300 % increase to XXXX XXXX starting in XXXX of XXXX for hazard insurance for my home. This was unbeknownst to me about 600 % over the market price, I now have had XXXX different insurance companies make offers to replace this scam of home insurance from XXXX XXXX  and not one has gone over XXXX XXXX. I know for Rocket Mortgage this amount of increase should be fairly obvious as a problem, or terrible mistake and not the sort of thing anyone would take lightly especially a financial institution. A customer like me paying twice as much is XXXX thing but paying XXXX to 7 times as much should set off alarm bells with Rocket Mortgage. Why? Because my monthly payment was about to go up 3 times, meaning if I have 3 months of funds based on my XXXX payment I now have only XXXX month 's worth. If thats all the money I have then Ill need to make XXXX times as much the rest of my 25 years on the loan. That is a recipe for a default. 

But the worst part is that this money is a debt Ialready already owe from the past XXXX months. Its funds that had already been paid to the insurance company by Rocket Mortgage in XXXX of XXXX. As the homeowner, I was in the dark that Rocket Mortgage would be raising my rate to pay for the rate increase on an insurance product they know is very out of the norm in the industry. I am stuck paying for peditory overpriced insurance that I didnt know I would be paying for. I didn't realise any of this had happened until I opened a letter form Rocket Mortgage on Monday XX/XX/XXXX. 

So, for some clarity, let 's start with the letter from XXXX XXXX to inform me on the rate change. This letter sent in XX/XX/XXXX, was formatted and worded the same as the amount that had been adjusted in XXXX. In XXXX the amount had gone up by {$1000.00} dollars. In the letter its unclear why exactly, but I took it in stride because there had been a lot of news about rates going up in Texas. A XXXX XXXX  across XXXX months was manageable. In XXXX the adjustment went up over {$11000.00} dollars and the letter was nearly identical but just as unclear as to why it had jumped. 

The XXXX and XXXX letters are indistinguishable on every page except for XXXX page and the amount calculations. At the top of page XXXX in XX/XX/XXXX : " Total 12 Month Policy Premium : {$4000.00} '' and ( due to pagnations changings with a statement of Change in Increased Liability and Medical Payments Limits ) on page XXXX in XX/XX/XXXX : Total 12 Month Premium : {$15000.00} Now Im aware the home insurance market is in turmoil with global warming and destructive weather events. And Im aware that Rocket Mortgage is not in control of default procedures that are meant to continue coverage, framed as in the best interest of the homeowner. But a XXXX percent increase on insurance within any business would have resulted in countless meetings and memos sent. Rocket mortgage didnt do that for me. They called XXXX times, once from the same number that they also use for Rocket Mortgage solicitations, so I ignored it. And XXXX more numbers that appear to me to be solicitations because at the time it was about a month out from a presidential election. This in a year that we saw record amounts of money spent on phone banks, robocalls and text messaging. 

But the main problem here is the spending of this exorbanate amount month after month by Rocket Mortgage without exposing it or investigating it as they would for themselves, is dangerous. This was only achievable by XXXX XXXX because of institutional trust. It was predicated on me feeling comfortable with the processes that both institutions ( Rocket Mortgage and XXXX XXXX ) and myself rely on for ease of use and continuing business without gaps. 

But when XXXX party can manipulate that process and trust without raising an alarm in the other, Rocket Mortgage is turning a blind eye to what is clearly a mistake at best and predatory at worst. Internally Rocket Mortgage had the data the technology but not the processes to protect the consumer, because in this case Rocket Mortgage has no risk associated with this predatory practice XXXX XXXX is engaged in. 

The laissez-faire loophole leaves the consumer on the hook, it doesn't have accountability to any party to make the consumer whole. But most of all it is economically dangerous given the economy of the past few years. This has the beginnings of a housing crisis. In XXXX during the last housing market crash, I was on food stamps living just below the poverty line. Had this happened then I would have lost my home the same month I opened the letter. I had no savings, I had no work and XXXX sons and luckily a wife who worked as a XXXX  in a doctor 's office making a little more than a manager at XXXX. 

Now Im on the hook for XXXX XXXX dollars. There is no recourse, no negotiations, no fault but my own for the XXXX months of payments Rocket Mortgage did behind closed doors unbeknownst to me. Again I understand the nicety of this arrangement but there has to be accountability somewhere in the system. XXXX XXXX took advantage of me and Rocket Mortgage let them. Both parties knew better. To simply follow the letter of an obligation of the law is different from willing denial from the obvious. For example, would Rocket Mortgage pay 600 % over what I had paid the previous year? If XXXX XXXX had sent in double the amount? A {$30000.00} bill, would they pay it on my behalf with no questions or approvals needed? What is the limit? What about XXXX XXXX or XXXX XXXX? Would they run the number then on my XXXX bedroom, XXXX bath next to railroad tracks? Would they spend my money on my behalf for XXXX months no matter the amount? 

When I talked to the representative of XXXX XXXX, they said it was an adjustment because the replacement price of the house had gone up. So in XXXX of XXXX for XXXX years Id been flying under the radar because theyre bad at their jobs? Market value and replacement cost is a basic need for the industry every quarter. Hard to believe they just now, despite the market, despite having made no improvements to my home, despite needing to make projections and payouts in the area for years, that they had under-charged me the whole time by XXXX percent.

Company response to consumer: Closed with explanation