Consumer complaint received 2024-08-23 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Confusing or misleading advertising or marketing
Company: Rocket Mortgage, LLC
State: GA

Complaint narrative:
1. Inflated Appraisal by XXXX, XXXX Rocket Mortgage appointed XXXX, XXXX, to conduct the appraisal for my mortgage. I have substantial evidence to suggest that the property appraisal was deliberately inflated to justify a higher loan amount. This practice of inflating appraisals is a form of mortgage fraud that directly impacts the borrower by increasing the loan-to-value ratio, which can lead to financial instability and a higher likelihood of default. This is also a violation of federal law RESPA ( see Violations and Codes on last page ). 

2. Conflict of Interest and Deceptive Practices by Realtor My realtor, XXXX XXXX, was appointed by Rocket Mortgage and acted in the interest of Rocket Mortgage rather than in my best interest as her client. When I expressed concerns about the loan officer, XXXX XXXX, and the sudden increase in my approved loan amount from {$410000.00} to {$420000.00} ( despite higher taxes on the second property ), XXXX XXXX attempted to convince me that my concerns were unfounded and " all in my head. '' She frequently communicated with XXXX XXXX privately about my concerns and would subsequently try to persuade me to proceed with the transaction, regardless of the red flags I raised. Because of this, I felt pressured to sign closing documents because I thought I would be legally responsible for this property. 

3. Bait-and-Switch Tactics Rocket Mortgage engaged in bait-and-switch tactics by initially offering favorable loan terms, only to alter them during the closing process. When I questioned these changes and attempted to seek advice from other mortgage lenders, XXXX XXXX, my loan officer responded clearly with an attitude stating, " I did not know other companies were involved, '' which I interpreted as an attempt to shame me for seeking alternative advice and being knowledgeable about my options. 

4. Approval for a Loan Beyond My Means I was initially pre-approved for a loan amount of {$410000.00}, which was suddenly increased to {$420000.00} without a proper reassessment of my ability to repay. This practice, known as " loan churning '' or " equity stripping, '' involves approving a borrower for a higher loan amount than they can reasonably afford, often with little regard for the borrower 's debt-to-income ( DTI ) ratio. This has resulted in a mortgage payment that is nearly half of my monthly salary, which is unsustainable and places me at high risk of financial distress and default. 

5. Negligent and Dismissive Behavior by Rocket Mortgage Executives When I contacted Rocket Mortgage 's executive team with my concerns, I was met with dismissive and shaming behavior. Despite multiple recorded calls in which I sought clarification and education on the mortgage terms, I was essentially told that it was my fault for not understanding the complexities of the mortgage contract ( see call with XXXX XXXX who also sighed at me ). This treatment, combined with the negligent approval of a loan amount that exceeds a reasonable DTI ratio, has left me in a precarious financial situation. 

6. Legal Grounds for Rescission The practices described above constitute fraudulent misrepresentation, deceptive trade practices, and a violation of consumer protection laws. Under the Truth in Lending Act ( TILA ) and the Consumer Financial Protection Bureaus regulations, I am entitled to rescind the mortgage contract due to the fraudulent origination practices employed by Rocket Mortgage. There is no statute of limitations when it comes to fraudulent activity. Furthermore, the reckless disregard for my ability to repay the loan, as evidenced by the inflated loan approval and disregard for my DTI ratio, and blatant conflicts of interests strengthens the legal grounds for rescission. 

Request for Amicable Resolution In light of these serious issues, I am requesting that Rocket Mortgage rescind my mortgage contract without penalty and return my down payment and closing cost, as well as the costs I incurred in lieu of this fraud. I have consulted with two consumer protection attorneys who advised that, to avoid the costs and complications of litigation, a demand letter might suffice in resolving this matter amicably, which I did XX/XX/24. However, it was scanned by Rocket Mortgage and I never received a call or email regarding my letter. I would also like to note for a contract like a mortgage to be legally binding, it usually requires the agreement of both parties, typically evidenced by their signatures. If a company or party does not sign a contract, it may not be enforceable, as my contract was only signed by XXXX XXXX. And, the mortgage application to FHA did not include XXXX XXXX XXXX on application, which was made aware of at closing that XXXX XXXX XXXX XXXX was not on deed. If a mortgage lender fails to include a spouse on an FHA loan application, resulting in the spouse not being listed on the deed, several legal and regulatory issues have been violated. Violations include : Truth in Lending Act ( TILA ), Equal Credit Opportunity Act ( ECOA ), Fair Housing Act, Breach of Contract, violations to adhere of FHA guidelines and negligence. 

I hope we can come to an agreement without involving ligation, Consumer Financial Protection, Attorney General, HUD or a judge. 

Calls to XXXX XXXX in Executive Office, XXXX XXXX, voicemail to XXXX XXXX on XX/XX/24. 



Violations of other codes, laws, policies, or procedures 2201 section 2201 statue of frauds, everything if you dont raise it, you waive it. All deeds of trust contain a confess judgment. 

Securities is not a negotiable instrument have a maturity of more than nine months Title 15, section 78 C810 Rule 13 Mandatory Counterclaim UCC 3305 3306 16 CSR 432 3.106 D 226.23 of Tila 12 CFR CODE OF REGULATION Z RESPA 8-505 AND 8508 INVESTMENT CONTRACT NOT LOAN GOVERNED BY CONTRACT LAW

Company response to consumer: Closed with explanation