In April of this year, I was contacted by a James Byrd from Quicken Loans Inc. James Byrd told me that Quicken Loans Inc. Would like to be my mortgage provider when I purchased my new home. I gave a deposit to James Byrd of $500 that was to go towards my appraisal/closing fees and James ran my credit and determined my credit worthiness.
I finally found a home, and submitted an offer. I was assured by Quicken Loans that I was approved for my mortgage amount and that there would be no problems. Quicken Loans sent me a commitment letter detailing my interest rate and points for my mortgage on 7/17. I signed the commitment letter and returned it to Quicken Loans. The commitment letter was to lock in my rate for my new mortgage. I spoke with James Byrd on the phone and confirmed that my interest rate was locked now that I had found a home, and signed the commitment letter.
Quicken Loans stated that I needed to purchase Flood Insurance on the property, and I did so. I had the insurance agent email the binder to Quicken Loans on 8/2/07. On 8/4 I received another commitment letter stating that I needed to obtain Flood Insurance, however this commitment letter raised my interested rate 1.375% higher than the previous commitment letter and raised my points to 2% of the mortgage, a difference of thousands of dollars!
The new commitment letter also incorrectly noted that I did not have to have PMI, which would be impossible for my loan. This error would necessitate another "commitment" letter and who knows what that letter would indicate as my interest rate.
I never received an explanation as to why my interest rates were jacked up so high, or why Quicken Loans felt the need to bait and switch my mortgage loan. I did not immediately sign the new commitment letter and emailed James Byrd asking for clarification. The new commitment letter stated that I had till the end of September to sign and return the form.
On 8/8/07 I received a phone call from Peter Ross of Quicken Loans stating that since I wasn't happy with the rate and points of my loan Quicken Loans was reneging on my loan and would not provide me a mortgage.
I made several phone calls to James Byrd, Mario Bojaj and to the consumer help line of Quicken Loans. I was told every time that everyone was in a meeting, and that no one could help me.
I wrote to James Byrd and Mario Bojaj several times demanding my deposit back for the loan that Quicken Loans fooled me into thinking was in place and I received no answer. Today I received an email from Scott King, Client Advocate Quicken Loans 800 863 4332 ext 55993 734 805 5993- Direct 734 805 0141- Fax [email protected], telling me that "Based on the deposit agreement that you signed at application you are not warranted a refund of the deposit as the appraisal was done and we were able to fund this loan but you chose not to proceed."
I informed Mr. King that I was not the one who chose not to proceed, and in fact, not being able to close on the mortgage has caused me to lose the home. I have been greatly harmed because Quicken Loans pulled their financing at the last moment.
I have all of the documentation and emails from this company including all of the contract paperwork that I signed. I realize that the mortgage industry is in turmoil right now, but that should not excuse a mortgage provider from basic ethical treatment of their customers.
0 comments