Consumer complaint received 2025-11-10 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Fees charged
Company: Rocket Mortgage, LLC
State: MA

Complaint narrative:
I am filing this complaint regarding Rocket Mortgage and their servicing conduct on my former property located at XXXX XXXX XXXX XXXXXXXX XXXX XXXXXXXX. The issues involve improper property preservation charges, refusal to provide required documentation, misapplication of insurance funds, inaccurate payoff statements, damaged personal property, and a delayed closing which resulted in financial harm.

Rocket Mortgage assessed approximately XXXX dollars in property preservation charges for foundation work, roof work, landscaping, mold remediation, and other contractor labor. I had already begun securing licensed contractor quotes for roof work and had received a partial insurance payout prior to Rocket imposing these charges. This shows that I was actively maintaining the property and arranging necessary repairs. I requested invoices, work orders, and service documentation from Rocket in order to verify the charges and to submit reimbursement through my homeowners insurance. Rocket refused to provide the invoices, stating that vendor documentation was proprietary. This refusal prevented me from obtaining insurance reimbursement and from verifying whether the work billed was necessary or completed. 
On XX/XX/XXXX I contacted Rocket Mortgage regarding the preservation charges. I was told by a Rocket team member that I would need to clear my balance in order for property preservation activity to stop. This statement was unprofessional and incorrect. Following this, I continued to communicate with Rocket throughout XXXX and XXXX. In XXXX I spoke with a Rocket representative named XXXX XXXX who acknowledged that the XX/XX/XXXX communication was mishandled and should not have occurred. From XX/XX/XXXX forward I remained in ongoing communication with Rocket by phone and email regarding these charges and the status of the property. 
On XX/XX/year> I submitted a formal Notice of Error and Request for Information to Rocket Mortgage at their designated RESPA qualified written request address. This was not my first attempt to resolve this matter. I had already communicated multiple times by phone beginning XX/XX/XXXX and by email beginning in XXXX to request clarification and documentation. Rocket replied only with an itemized list of charge categories rather than providing the actual contractor invoices. This does not satisfy Regulation X including 12 CFR 1024.35 and 12 CFR 1024.36 which require a servicer to conduct a reasonable investigation and provide copies of documents relied upon to impose fees on a borrower account.

Rocket Mortgage received an insurance payment of XXXX dollars for roof repairs while including the same amount in the preservation charges added to my payoff. This constitutes attempted double recovery. Rocket later reversed the amount which confirms the payoff was originally inaccurate. Additionally, when I provided Rocket with a copy of the insurance check they had received and cashed, Rocket did not issue a clear credit for the insurance funds. Instead, Rocket removed approximately XXXX dollars of roof related preservation charges that had posted after the insurance proceeds were received. These adjustments were made by removing line items rather than through a transparent application of insurance funds to the account. Insurance proceeds are required to be applied to the loss they are issued for. The manner in which these adjustments were recorded indicates misapplication of funds and inaccurate accounting in the payoff calculation.

Rocket removed certain property preservation charges including lawn care after XX/XX/XXXX only after I challenged the validity of the charges. This removal is an acknowledgment that the charges were not proper or were not supported. Despite this correction, Rocket continued adding new preservation charges through XXXX. 
Rocket is also withholding XXXX dollars in restricted escrow. Their Executive Servicing Escalation team stated in writing that these funds would be refunded after payoff which is an acknowledgment that the funds belong to me. Rocket has not returned the funds.

Rocket classified the property as vacant. However, I was temporarily residing in Massachusetts for work and caregiving responsibilities and I remained in contact regarding the property. Rocket sent a notary to me in Massachusetts earlier in the year to complete mortgage relief paperwork. The XXXX XXXX XXXXXXXX also contacted me to confirm ownership regarding the water bill and I confirmed that I owned and remained responsible for the property. I also had the home cleaned and painted and I paid for regular lawn care during this period and I have receipts available. These facts demonstrate that I actively maintained the property and that the vacancy classification was improper.

Rockets actions directly increased loss and prevented mitigation. Their refusal to provide invoices blocked me from submitting an insurance claim for covered repairs. Their misclassification of the property triggered unnecessary preservation charges. Their inaccurate payoff statements delayed closing and increased carrying costs. Their mishandling of the XX/XX/XXXX communication and acknowledgment of error demonstrates servicing oversight failures. These actions forced me into greater financial burden than would have occurred had Rocket followed required servicing standards under Regulation X.

Rocket charged XXXX dollars for mold remediation. Because Rocket refused to provide vendor documentation, I can not submit the remediation charge for reimbursement through my homeowners insurance. During the remediation process personal property was damaged including religious and sacred texts.

The buyer for the property was prepared to close on XX/XX/XXXX. Rocket provided an inaccurate payoff statement which delayed closing until XX/XX/XXXX. My monthly carrying cost was XXXX dollars which equals XXXX dollars per day based on a 31 day month. The 21 day delay resulted in XXXX dollars in holding costs. 
I request that the CFPB investigate Rocket Mortgage for : 1. Failure to comply with Regulation X by refusing to provide documentation relied upon to impose fees 2. Attempted double recovery of the XXXX dollar insurance payment 3. Misapplication of insurance proceeds and inaccurate accounting of roof repair charges 4. Withholding of the XXXX dollar restricted escrow refund 5. Adding and later removing improper property preservation charges 6. Providing incorrect and misleading servicing information on XX/XX/XXXX 7. Improper vacancy classification despite documented communication, municipal notice, and continuous property maintenance 8. Causing a documented closing delay and financial loss due to inaccurate payoff statements 9. Failure to provide documentation necessary for reimbursement of the XXXX dollar mold remediation charge and damage to personal religious property

Company response to consumer: Closed with explanation