Consumer complaint received 2025-06-05 00:00:00
Product: Mortgage — VA 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: TX

Complaint narrative:
Hello, I have run into problems with the Lender for my Home. They have committed Fraud and misled me into signing an Insurance Agreement with them that has caused me Financial Harm. They are insisting I agreed to providing Home Insurance on my Home, but I have communicated with them that they Misled me, an inexperienced first time home buyer, into agreeing to that policy and have broken Texas Law by Failing to Disclose Material Facts, Texas Does Not Legally Require Home Insurance, before I signed, which would have caused me to search for a different lender without a home insurance requirement, but their Response was ultimately Unprofessional, and because they are aware of Texas and Federal Law now, as I have explained it to them thoroughly, Unlawful and Illegal. I have gotten them to Admit that they did not Disclose the mentioned Material Fact to me at time of Closing, which was Material Misrepresentation and Unlawful, but are Refusing to adjust the Terms of their Home Insurance requirement for my account anyway. I need assistance as I have relayed a Full and Thorough Explanation of Texas Law, and how they Broke it, to Rocket Mortgage, but they refused to adjust their policy and exempt my account from requiring home insurance, which they attained my consent through Material Representation, Illegal Means. This puts me at a gross disadvantage as I would have searched for a different Lender if Rocket Mortgage had Disclosed that Material Fact to me. 

Laws Requiring Rocket Mortgage to Disclose Material Facts Short Answer : Rocket Mortgage was legally obligated to disclose Texass non-mandatory homeowners insurance status under the Texas Deceptive Trade Practices Act ( DTPA ) 17.46 ( b ) ( 24 ), which prohibits failing to disclose known material facts to induce a transaction, and potentially under the federal Truth in Lending Act ( TILA ) ( 15 U.S.C. 1601 et seq. ) and VA guidelines ( VA Pamphlet 26-7, Chapter 9 ), which require clear disclosure of loan terms and conditions. Their non-disclosure of this fact, which they knew ( per their website : Homeowners Insurance is not Legally Required, but most likely require [ d ] ), violates DTPA 17.46 ( b ) ( 24 ), as it misled me into signing their Deed of Trust, covering their home insurance requirement, constituting fraudulent inducement. 

Detailed Overview : 1. Texas Deceptive Trade Practices Act ( DTPA ) 17.46 ( b ) ( 24 ) : Law : The DTPA prohibits failing to disclose information concerning goods or services which was known at the time of the transaction if such failure to disclose such information was intended to induce the consumer into a transaction into which the consumer would not have entered had the information been disclosed ( Tex. Bus. & Com. Code 17.46 ( b ) ( 24 ) ). 
Application : Rocket Mortgage knew Texas law does not require homeowners insurance ( Texas Insurance Code, Title 5, Subtitle C, Chapter 601 ), as evidenced by their website. Their failure to disclose this material fact before I signed their Deed of Trust induced me to agree to Section 5s insurance requirement, which I would not have done, seeking a no-insurance lender. Their admission that No Such disclosure exists confirms this violation, making them liable for damages ( up to {$5000.00} ), treble damages for knowing conduct, and attorney fees ( XXXX ( b ) ( d ) ). 
Relevance : This is the primary law supporting my claim, as it directly addresses non-disclosure of known material facts, and their contradictory denial of a violation strengthens my case ( XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX. XXXX ) ). 
2. Texas Insurance Code, Title 5, Subtitle C, Chapter 601 : Law : This statute governs property and casualty insurance, including homeowners insurance, and does not mandate homeowners insurance in Texas, unlike auto insurance ( Tex. Ins. Code 601.051 ). It also regulates lender-placed insurance ( Chapter 551, Subchapter E ), requiring notice ( e.g., Texas Collateral Protection Act notice ).

Application : Rocket Mortgages website acknowledges Texass non-mandatory status, but they failed to disclose this to me, instead presenting insurance as a mandatory condition in their Deed of Trust. While the Insurance Code itself doesnt mandate disclosure, it establishes the material fact Rocket Mortgage withheld, actionable under DTPA 17.46 ( b ) ( 24 ). Their reference to the Texas Collateral Protection Act notice in their response is irrelevant, as it addresses lender-placed insurance, not the non-mandatory status. 
Relevance : This code provides the factual basis for my claim, proving the material fact Rocket Mortgage knew but didnt disclose. 
3. Truth in Lending Act ( TILA ) ( 15 U.S.C. 1601 et seq. ) and Regulation Z ( 12 CFR Part 1026 ) : Law : TILA requires lenders to disclose key loan terms, including material disclosures about costs and conditions, in a clear and conspicuous manner before consummation ( 15 U.S.C. 1638 ; 12 CFR 1026.17 ). Regulation Z defines material disclosures as information affecting the consumers decision to enter the transaction. 
Application : Texass non-mandatory insurance status could be considered a material disclosure, as it affects the cost and conditions of the loan ( e.g., Section 5s insurance requirement increased your costs by {$5000.00} ). Rocket Mortgages failure to disclose this may violate TILA if it obscured the true nature of the loan terms. However, TILA claims have a one-year statute of limitations ( 15 U.S.C. 1640 ( e ) ), which may have expired since XX/XX/XXXX, unless equitable tolling applies due to their concealment. 
Relevance : TILA is secondary to DTPA due to time constraints but supports my argument for regulatory complaints ( e.g., CFPB ), as it emphasizes the duty to disclose material loan conditions. 
4. VA Guidelines ( VA Pamphlet 26-7, Chapter 9 ) : Guideline : The VA Lenders Handbook requires approved lenders to comply with federal and state laws, including consumer protection laws, and to act in good faith ( Chapter 9, Legal Requirements ). Lenders must ensure borrowers are fully informed of loan terms and conditions. 
Application : Rocket Mortgage, an approved VA lender, violated these guidelines by failing to disclose Texass non-mandatory status, breaching their duty to inform me of material facts affecting my loan. I have requested VA intervention to waive my lender 's insurance requirement or default the loan. 
Relevance : While not a statute, these guidelines bind VA lenders and justify VA escalation, as Rocket Mortgages actions may affect other veterans. 
5. Restatement ( Second ) of Contracts 164 : Principle : A contract is voidable if one partys misrepresentation ( including non-disclosure of a material fact ) induces another to enter it, and the recipient justifiably relies on it. 
Application : Rocket Mortgages non-disclosure of Texass non-mandatory home insurance status, which they knew, induced me to sign their Deed of Trust, which I would not have done, seeking a no-insurance lender. This may void Section 5 ( a ) or their Deed of Trust, home insurance requirement ( XXXX  XXXX XXXX XXXX XXXX XXXX XXXX XXXX. XXXX, XXXX XXXX XXXX ( XXXX. XXXX ) ). 
Relevance : This supports my claim that their requirement for me to have Home Insurance on my Home and their Deed of Trust is voidable, though courts may limit relief to damages and their Section 5 home insurance requirement waiver.

Company response to consumer: Closed with explanation