Consumer complaint received 2021-09-19 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Rocket Mortgage, LLC
State: WA

Complaint narrative:
I refinanced my property with Rocket Mortgage in XX/XX/2020. I submitted proof of my home hazard insurance at the time I submitted the loan paperwork. I have never fallen behind in any way, shape, or form on my home hazard insurance. ( I have had automatic payment for many years. I have NEVER had " expired '' home hazard insurance. I have purchased my home hazard insurance from the same insurance company for the past 16 years. ) I received a letter via postal mail only ( not via email and not via my online Rocket Mortgage account ) informing me that Rocket Mortgage records " show that your hazard insurance has expired, and we do not have evidence that you have obtained new coverage. Because hazard insurance is required on your property, we plan to buy insurance for your property. You must pay us for any period during which the insurance we buy is in effect but you do not have insurance. '' The letter continued, " The insurance we buy : May be significantly more expensive ... May not provide as much coverage ... '' Why would Rocket Mortgage only send this important information via USPS mail? Why would Rocket Mortgage not have reached-out to me via email and my online Rocket Mortgage account asking for proof of insurance? Is it because they were hoping I would not open their letter sent only via postal mail so that they could " gouge me '' with high-cost, low-quality hazard insurance? 

I responded within 24 hours of receiving the snail-mail letter from Rocket Mortgage by downloading a copy of my hazard insurance ( which was NEVER expired ) via the web address they provided for this purpose. 

My previous mortgage provided did not require annual proof of my home hazard insurance, so Rocket Mortgage 's letter and action took me by surprise. Rocket Mortgage never told me during the refinancing process to send a copy of my home hazard insurance each time it was renewed. If this information was included in " the fine print '' of the loan paperwork, I did not see it. 

I wonder if Rocket Mortgage takes this approach with all of their customers, or could my age and XXXX have played a role in my receiving this letter? 

I hope that CFPB can " shine a light '' on this process. Does it seem predatory from your perspective? 

Tip for others : During the loan process the Rocket Mortgage loan officer I was talking to spoke quickly and said several times that my loan interest rate would be " 2.9 % '' When I saw the paperwork, it was actually 2.99 %, almost a full percentage point higher. I realized at the time that he could defend the difference between what he said and the paperwork by saying I mis-heard. Watch-out for any telephone-based quotes that end in " .9 '' -- ->Check the paperwork to see if the interest rate is actually " .99 ''. I have a hunch this is a common " bait & switch '' ploy " XXXX people in '' using .9 on the phone and then switching to .99 on the paperwork...

Company response to consumer: Closed with explanation