Consumer complaint received 2026-05-03 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Fees or costs after closing
Company: Rocket Mortgage, LLC
State: FL

Complaint narrative:
RE : Formal RESPA Complaint Unauthorized Application of Escrow Funds/ Mortgage Servicer : XXXX XXXX ( XXXX XXXX XXXX )/ Loan Number : XXXX Dear Consumer Financial Protection Bureau : This correspondence comes to you as a formal complaint pursuant to the Real Estate Settlement Procedures Act ( RESPA ), 12 U.S.C. 2605, and its implementing regulation, Regulation X ( 12 C.F.R. 1024 ), against my mortgage servicer, XXXX XXXX ( XXXX XXXX XXXX ). This complaint concerns the unauthorized application of escrow funds associated with my mortgage loan, Loan Number : XXXX, secured by the property located at XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX. XXXX XXXX applied {$10000.00} in escrow funds to a loan payoff/principal reduction without my written authorization, in direct violation of RESPA 's escrow account management requirements. I respectfully request that the CFPB open a formal investigation into XXXX XXXX XXXX conduct with respect to this matter and compel appropriate remediation, including the full restoration of the diverted escrow funds. BACKGROUND AND TIMELINE OF EVENTS The following is a chronological account of the relevant events giving rise to this complaint : 1. At all relevant times, my mortgage loan ( Loan Number : XXXX ) maintained an escrow account with XXXX XXXX. The funds held in that escrow account were designated and intended solely for the payment of property taxes and/or homeowner 's insurance on the property located at XXXX XXXX XXXX XXXX XXXX XXXX, FL XXXX . 2. On or around XX/XX/XXXX : XXXX XXXX claims to have received verbal authorization from me to apply escrow funds totaling {$10000.00} toward a loan payoff or principal reduction. I expressly dispute that I ever provided such authorization. No written consent was obtained from me prior to or at the time of the transaction, no written notice of the intended action was provided to me, and no written confirmation of any such agreement was ever delivered to me. 3. The sum of {$10000.00} was applied to my loan balance without my written authorization, in violation of the escrow account management requirements set forth under 12 C.F.R. 1024.17. 4. Following the unauthorized application of these funds, I submitted a formal written dispute and complaint to XXXX XXXX, demanding an explanation and the return of the misapplied escrow funds. XXXX. XX/XX/XXXX : XXXX XXXX issued a written response to my dispute. This response failed to adequately address or resolve the matter. Specifically, XXXX XXXX did not : ( a ) return the {$10000.00} to my escrow account ; ( b ) provide any documented evidence of the alleged verbal consent; or ( c ) explain how its conduct complied with RESPA 's escrow account provisions. 6. XX/XX/XXXX : XXXX XXXX issued a second written response. Again, XXXX XXXX failed to produce documented evidence of my consent, failed to reverse the unauthorized transaction, and continued to assert that alleged verbal consent alone constituted sufficient authorization under RESPA a position I dispute as both factually incorrect and legally insufficient under applicable law. 7. As of the date of this letter, XX/XX/XXXX, XXXX XXXX has not returned the {$10000.00} to my escrow account, has not provided any written documentation evidencing the alleged verbal consent, and has not brought the escrow account into compliance with applicable RESPA requirements. RESPA VIOLATIONS ALLEGED Based on the foregoing facts, I allege that XXXX XXXX ( XXXX XXXX XXXX ) has committed the following violations of RESPA and Regulation X : 8. Violation of 12 C.F.R. 1024.17 Escrow Accounts : XXXX XXXX applied escrow funds to a purpose other than their designated use ( i.e., the payment of property taxes and/or homeowner 's insurance ) without proper written authorization from me, the borrower. Escrow funds are held in trust for specific, designated purposes. A mortgage servicer is not permitted under RESPA or Regulation X to divert, offset, or apply escrow funds to loan payoff or principal reduction without explicit, documented borrower consent. No such consent was obtained or documented. 9. Violation of 12 U.S.C. 2605 ( e ) Duty to Respond to Qualified Written Requests : XXXX XXXX XXXX written responses dated XX/XX/XXXX, and XX/XX/XXXX, failed to substantively resolve my dispute and failed to provide documentation supporting XXXX XXXX XXXX position. These responses did not satisfy the servicer 's obligation to respond meaningfully to borrower inquiries under RESPA 's Qualified Written Request provisions, as they neither corrected the alleged error nor provided credible evidence justifying the servicer 's actions. 10. Reliance on Alleged Verbal Consent Legally Insufficient Under RESPA : RESPA and Regulation X do not authorize mortgage servicers to divert escrow funds based solely on an alleged verbal authorization from a borrower. No written consent was obtained from me ; no written disclosure was provided to me before or after the transaction ; and no written confirmation was sent to me confirming the nature or effect of any such agreement. The absence of these required safeguards constitutes a failure to comply with proper escrow account management standards under applicable law. HARM SUFFERED As a direct and proximate result of XXXX XXXX XXXX unauthorized actions, I have suffered the following harms : I have been deprived of {$10000.00} in escrow funds that were held for the specific and designated purpose of paying property taxes and/or homeowner 's insurance on my property at XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX . These funds are no longer available in my escrow account for their intended purpose. The unauthorized application of these escrow funds may jeopardize the timely payment of my property taxes and/or homeowner 's insurance premiums, exposing me to financial penalties, potential lapses in insurance coverage, and serious risk to my continued ownership and security of my home. I have incurred significant time, stress, and associated costs in attempting to resolve this matter directly with XXXX XXXX over a period of multiple months beginning with my initial dispute and continuing through XXXX XXXX XXXX inadequate responses of XX/XX/XXXX, and XX/XX/XXXX without any satisfactory resolution.

Company response to consumer: Closed with explanation