- Report: #832868
Complaint Review: Quicken Loans - Internet Internet
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Quicken Loans
1050 Woodward Ave Internet, Internet, United States of America
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www.QuickenLoans.com
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Quicken Loans Quicken Loans, Inc. Consumer Beware of Quicken Loans, You Will Lose $500 Internet, Internet
First let me say that I have worked in banking/lending for many years and consider myself fairly knowledgable about mortgage lending.
Now, with rates as low as they are, I decided it was time to refinance the home we had built just two years ago in a growing area. I checked out Quicken Loans and like the speed in which they responded to my initial inquiry. (Especially considering I sent a message to my current mortgage holder and they never responded back)
After talking with the very nice Sr. Mortgage Banker Michael, he sent me some preliminary numbers which were inline with what I had been looking at rate and fee wise. The next part is where I should have paid closer attention, he asked for $500 up-front to show I was serious about doing business with them. This is not that uncommon considering many places were asking for an "application" fee.
I supplied CC number and signed the initial documents. Next thing I know they order an appraisal which comes in $45,000 less than what my house appraised for just two years earlier and $33,000 less than tax assessed value. Working for a bank I had our group review the appraisal, who said there should have been some adjustments made due to age of comps. Unfortunately, Quicken would not review the appraisal which meant I would know have to come to the table with an additional $21,000 to close.
After informing Michael that I did not have $21,000 in my cash to bring to closing, he said underwriting would decline my loan and I would lose my $500 deposit.
Just some advice, first stay away from Quicken Loans, once they get your $500 it is gone UNLESS, you can close the loan. Even if you do not want the loan, CLOSE. According to Reg Z, Truth in Lending, once you close on a refi (there are a couple of exceptions) you have 3 days to cancel the loan and get everything back. This is something they will not tell you! Unfortunately, I couldn't even close my loan because I didn't have the $21,000 to bring to the table even if I wanted to.
Now, with rates as low as they are, I decided it was time to refinance the home we had built just two years ago in a growing area. I checked out Quicken Loans and like the speed in which they responded to my initial inquiry. (Especially considering I sent a message to my current mortgage holder and they never responded back)
After talking with the very nice Sr. Mortgage Banker Michael, he sent me some preliminary numbers which were inline with what I had been looking at rate and fee wise. The next part is where I should have paid closer attention, he asked for $500 up-front to show I was serious about doing business with them. This is not that uncommon considering many places were asking for an "application" fee.
I supplied CC number and signed the initial documents. Next thing I know they order an appraisal which comes in $45,000 less than what my house appraised for just two years earlier and $33,000 less than tax assessed value. Working for a bank I had our group review the appraisal, who said there should have been some adjustments made due to age of comps. Unfortunately, Quicken would not review the appraisal which meant I would know have to come to the table with an additional $21,000 to close.
After informing Michael that I did not have $21,000 in my cash to bring to closing, he said underwriting would decline my loan and I would lose my $500 deposit.
Just some advice, first stay away from Quicken Loans, once they get your $500 it is gone UNLESS, you can close the loan. Even if you do not want the loan, CLOSE. According to Reg Z, Truth in Lending, once you close on a refi (there are a couple of exceptions) you have 3 days to cancel the loan and get everything back. This is something they will not tell you! Unfortunately, I couldn't even close my loan because I didn't have the $21,000 to bring to the table even if I wanted to.
2 Updates & Rebuttals
Kelly at QuickenLoans
Livonia,Michigan,
USA
Quicken Loans response
#2UPDATE Employee
Fri, March 30, 2012
My name is Jason and I work for Quicken Loans. If you'd like us to reach out to you and go further into the specifics of your loan, feel free to email us at [email protected].
Our deposit policy is clearly explained on the application that all clients sign prior to us beginning work on their loan. If your mortgage application is denied, or if you decide not to go forward with your loan, well refund your deposit minus any outside costs weve incurred up to that point.
For example, if you gave us a $500 deposit, and we spent $300 on an appraisal and $10 on a credit report, you will be refunded the difference of $190. Youll receive a copy of your credit report and appraisals, assuming both have been completed. This information is also available on our website: http://www.quickenloans.com/about/quicken-loans-deposit
If your appraisal came in low, we would refund your deposit, minus costs we incur on your behalf (appraisal/credit report). We do not make any money at all.
Quicken Loans, as well as all other lenders are in no way affiliated with the value of your appraisal or the appraiser selected for your home. Quicken Loans can place the order for an appraisal but cannot perform the actual appraisal. It is typically handled through the Appraisal Management Company (AMC) and appraisers are often selected from their affiliated network. More information is available on our website: http://www.quickenloans.com/about/appraisal-process
The success of our company is based on clients who are able to close a loan with us. There is no benefit (financial or otherwise) for us if a loan cant be processed due to a low appraisal.
If you have further questions - feel free to contact us at [email protected]. We'd be happy to have one of our team members reach out to you.
Tagurit
Plano,Texas,
USA
Screwy Appraisal Process
#3Consumer Comment
Thu, February 09, 2012
The biggest issue with Quicken is around their appraisal process. The company that does the appraisals I believe is owned by Quicken. Quicken does want to close on loans since doing this makes them considerably more money than the $500 deposit but I think they need to serioulsy re-evaluate the talent they have on on staff in their appraisal area. Keep in mind you cannot count on what your house appraised for 2 years ago or even last year or what you are paying on the tax rolls. Use Zillow or some other website and have a good look at what they say. They are below market value but will give you a realistic idea of what the appraisal will come in at. In my case, I knew in advance exactly what my house would appraise for so no surprises and my refi with Quicken went through. However, I see a lot of compliants about those that didn't and most of the time it is the appraised value that is the issue. Quicken can be a good option but only for those homeowners with significant equity in their property so the appraisal will not be an issue and those homeowners with good credit scores and more than adequate income/debt ratios. For these kind of homeowners the Quicken process seems to work well - for everyone else not so much.
