Complaint / review text:
We were interested in a loan subordination (combining our first and second mortgages) at a lower interest rate. However, we did not wish to pay off our second mortgage but rather pay it down, so as to keep the line of credit available. I happened to come upon the Quicken Loans website and was connected to a loan officer (Craig). What was initially thought to be a streamlined loan process for a low 4.37 % rate, ended up becoming a nightmare with a $500 price tag attached!
Craig stated that the $500 good faith fee would be refundable at closing. However, he stated nothing about the refundable status if you do not close on your loan, which eventually ended being the case. Also, Quicken's appraisal process is questionable at best. The first appraisal was extremely low, given our neighbors (having a similarly valued home) recently had their home locally appraised much higher. Once I conveyed my disappointment with the appraisal, Quicken volunteered to perform a second appraisal, which, interestingly, was a duplicate of the first. I would later learn that this was a common practice of the company.
Their appraisal method involved creating a lower loan to home value margin, thus limiting your financing options. This opened the door for them to sell us an FHA loan, literally. Once the FHA loan process was almost complete, we were looking at refinancing a $173,000 loan for $185,000, plus paying upfront on the first mortgage payment. Needless to say we stopped the entire process and requested a refund of our $500 good faith purported refundable deposit.
Craig stated that they already spent over $2,000 on the loan process and would not refund the money. The entire loan process was handled as if administered from the hip. Each new communication with Craig seemed to be accompanied with a new requirement/need (i. E. More cash upfront). Finally, when Craig requested that we would need to bring more cash to the closing, we had enough and stopped the process. I could hardly believe my ears when they refused to refund our good faith deposit.
We placed our good faith in the Quicken Loan process, but instead of receiving good faith service, we evidently became another victim of their deceptive practices. We would like our $500 good faith deposit refunded. It is the very least this company can do.