Bait and Switch, Predatory Practices. Beware!
The “BAIT”… my husband and I applied for a mortgage for a new construction home. We “were” having an amazing experience with the lender until 3 days before closing. YES, 3 DAYS! We received all approvals, including our closing disclosing document. Arrangements were made with the seller and title company, all backed by assurances from Rocket (Quicken) Loans team members.
On the day of our final walk-through, the ‘SWITCH’ began. We were told that there was a problem where my husband’s multiple streams of verified income were not usable. Yes, there were tax documents to support his income, going back over 10 years. Additionally, the lender chose to omit $1,200 from my income. Keep in mind, my income is static. I am salaried so my income is stable. I brought this to the attention of the “solution specialist” for which I was told that they could not change it in the system and to not worry about it and “focus on a solution”. How on earth does a lender arbitrarily omit a portion of your income? There were no bonuses or overtime factored in their omission. All of my paychecks support my salary so this omission for no supported reason, as well as omitting my husband’s salary does not pass the smell test. Essentially, the omissions changed our debt to income ratio from below the threshold for lending the just above, causing our loan to be in question.
1. Our loan was verified approved early and the shenanigans began 3 days prior to closing
2. The loan was “escalated” to a “solution specialist” who was belittling, condescending and inept as he did not work to offer a viable solution, like calculating my real salary to offset the DTI or using my husband’s income which was static from the same company for over 20 years… yeah, simple common sense was not applied. Brandon S. is out of his element for this level of the job. He tries to cover up his and the company’s misdoings with snark, disrespect and lies. He worked really hard ad placing the loan in such a desired place where the ultimate goal surely was to kill the deal. Honesty would have sufficied.
3. We were asked to bring a co-signer to the table, which we did. Our co-signer has an 817 credit score with very low DTI and substantial cash reserves. They proceeded to increase our points for no reason. Having a strong borrower should have sustained the 1 point or even lowered it. Instead of keeping the 1 point we were paying on the loan in place, they raised it an additional 1.5 points. Yes, they changed our loan points from 1 TO 2.5 (@*%$^#&) although our financial position was significantly stronger. This feels very predatorial!!!
4. Instead of recalculating our loan, which was in a better position with the strong co-signers, they proceeded to raise our percentage amount up from 5% to 10%, to 15%. We were told that our down payment which was in the high $20k’s, was increased to the low $60k’s, ultimately in the $80k’s . SERIOUSLY!!! This is shameful!
It is unfortunate that this lender is too big to think. Although we had an initial amazing experience with the Mortgage Banker, there is no critical thinking by the people in place from the underwriting department to the so-called solutions specialist. Increasing our financial outlay without justification is not a solution. Industry knowledge is critical to process loans and understanding the nuances of each loan. The people at Quicken do not have these skills as they look at what is in the computer and should the slightest thing go askew, they do not have the knowledge, nor experience to apply logic and apply real solutions. We should have never reached this point. Understanding how business works, by first treating customers with respect should be a priority, in addition to not waiting until the end to switch key elements of the loan which leaves a ‘scorched earth’ feeling should never happen.
We ultimately had a HORRIBLE experience!!! We were lied to all throughout the process for which we acted in good faith based on their counsel and assurances. To proceed all the way up to closing is neglectful and simply wrong. We have a substantial amount of money on the line as earnest money deposited. We are now left to find another lender, all the while trying to keep our new home in place and not lose our deposits.
Do yourself a huge favor and skip the nonsense. Our lives have been negatively affected and we will never do business with this company again… on any level as they are the worst company we have ever dealt with. Boooooooooooooooooooooooooooooooooooooooo!!!