Consumer complaint received 2025-01-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Trying to communicate with the company to fix an issue with the loan closing
Company: Rocket Mortgage, LLC
State: IL

Complaint narrative:
Complaint Summary I am filing this complaint against Rocket Mortgage for false and misleading advertising related to their Verified Approval program. Rocket Mortgage issued me a Verified Approval, but later denied my loan due to their own lending policies regarding the condo association, a factor they could have evaluated earlier in the process. This caused significant financial and emotional harm and forced me to secure alternative financing at the last minute.

Details of the Issue 1. Rocket Mortgages Verified Approval Program : Rocket Mortgage issued me a Verified Approval, suggesting that my loan was highly likely to close. The program is advertised as being based on a comprehensive analysis of all relevant factors, including credit, income, debt, and property information. However, Rocket Mortgage failed to review the condo association documents before granting this approval. If association documents can cause a loan not to be approved, underwriters should ask for them before verifying the loan.

When they finally reviewed the documents, they denied the loan because the association had rules granting them the final say in who the condo could be sold to. This policy reduced Rocket Mortgages leverage in foreclosure situations. Despite advertising a reliable and thorough process, their failure to consider such critical information upfront rendered the Verified Approval misleading. 
2. Email Evidence from Rocket Mortgage Banker : The decision to deny my loan is summarized in an email from XXXX XXXX, a banker at Rocket Mortgage, dated XX/XX/year> : I reached out to the condo underwriter yesterday to try to get in touch with you, as far as I know they have not done so [ the appraisal ]. What Im understanding is that we can not lend on a condo that has the final say of who they can or cant sell to. So if XXXX were to foreclose, default, or sell his home, Rocket Mortgage would have no leverage in the situation. 

This email confirms that the loan was denied due to Rocket Mortgages internal lending policies, not factors outside their control, as required under their Verified Approval terms. 
3. Harm Caused : I was forced to scramble to secure financing with another lender to avoid losing the property, as the seller was prepared to cancel the contract. 
The Verified Approval gave me false confidence that financing was secure, which influenced my decision to proceed with Rocket Mortgage. 
I endured significant stress and risked losing the property, which had previously been contingent but ultimately did not close due to financing issues as well. 

Supporting Evidence 1. Marketing Claims : Rocket Mortgage advertises the Verified Approval program as a reliable and thorough process. Their marketing states that all factors are reviewed before issuing approval, yet they failed to evaluate the condo association documents upfront. 
2. Email from Rocket Mortgage Banker : The email from XXXX XXXX demonstrates that the denial was due to Rocket Mortgages internal policies and could have been avoided if they had conducted a proper review before granting the Verified Approval. 
3. Timeline of Events XXXX XXXX XXXX XXXX XXXX  Verified Approval was issued. 
XX/XX/year> : Loan was denied after reviewing the condo association documents. 
XX/XX/XXXX : I secured financing with another lender. 
XX/XX/XXXX : Contract was saved from being canceled by the seller via signing of revised disclosures. 

4. Alternative Financing Details : I am proceeding with the purchase of the property through another lender, further demonstrating that Rocket Mortgages denial was based on their own decisions, not external factors.

Company response to consumer: Closed with explanation