Complaint Review: Quicken Loans - Livonia Michigan

BUYER BEWARE Even if you have been doing business with this company for years as I have. Check appraissal by getting independant one even if you must pay for it upfront. Dont believe originator pertaining the terms of your loan. I applied for a home equity loan for an original amount of 50k. Supposedly tied to libor which as of this writing is @5.20.% However today while going over my loan packet extensivly I discovered my rate is acually tied to prime which is as of this writing @7.25%. That explains why my rate hasnt dropped since the Fed lowered rates. It seems my initial rate was a bought down estimate based on prime not a direct reflection of libor bottom line is my payment would now be $177.00 lower than it currently is if it were tied as I was originally told to the libor index instead of prime.

This is not a frivolous acussation I spoke extensivley to the agent with whom I had dealt with and trusted for years on a number of mortgages since 1994 having her explain the libor index to me and being quoted the highest examples of the libor index rates throughout history. The bottom line is she flat out lied to me and the so called truth in lending agreement that was designed to protect the consumer from preditory lending practices has in my case been turned into a document to protect the lender. AS I SAID BUYER BEWARE if you can spend a few dollars for an attorney to go with you to the closing of any loan with this company. Even if, no especially if you already trust them as I did based on previous business dealings. I would like to see an investigation by Attorney General Mike Cox into the relationship between Quicken Loans and the so called PROFFESSIONAL APPRAISERS they use It just seems too convienent to me that in order to sell me a loan for twice the amount I originally applied for that my home appraised for $125,000.00 more than the amount that Quicken loans recently quoted me based on one of their computer based programs they use to determine eligibility over the phone in which case they QUICKLY told me I could not refinance into a 30 yr mortgage as my house would not appraise for the ammount that I owe.

I understand home values have dropped recently apparantly mine has dropped from 315,000.00 to 199,000.00 in 44 months according to Quicken loans. I dont expect much will come of this report. It seems there exists a cozy tax doller arrangement between the STATE OF MICHIGAN AND QUICKEN LOANS. I suppose thats part of the reason Attorney Mike Cox held a big gathering of lenders and borrowers at Cobo Hall in an attempt to save any further losses to fine financial institutions such as QUICKEN LOANS in the STATE OF MICHIGAN instead of investigating some of their practices as the STATE OF NEW YORK recently did reguarding past pressure put on appraisers to pump up numbers to make a loan work. No the plan must be minimize losses and continue to turn a blind eye to any questionable practices. No wonder there are so many foreclosures.I will not deal with or referr anyone as I have in the past to this company. Regrettfully a very close friend of mine upon my referral also took out a loan which is set to adjust to rate thats not feasible upon reviewing his loan in the small print recently found a pre-payment penalty in the loan. I was very sorry to hear this recent news as I referred him to my loan agent whom I trusted. AS I SAID BUYER BEWARE dont get sucked in by fast talk and fast numbers. The beauty of the whole thing is apparantly Quicken Loans makes their money from originating and closing these loans only to sell them to other companies to be left holding the notes which has fueled foreclosures across the country.Let it be known that my mortgages were not of the type referred to as high risk adjustables that we hear all the talk about congress and the president freezing rates on.This mortgage product was explained to be an adjustable rate tied to libor when in fact it is tied to the prime rate. That translates into a2.05% difference in other words tens of thousand of dollars on just one 100,000.00 loan.

Frank

milford, Michigan

U.S.A.