Consumer complaint received 2021-02-25
Company: NAVY FEDERAL CREDIT UNION
State: LA
Product: Mortgage
Sub-product: VA mortgage
Issue: Closing on a mortgage

Complaint:
This statement has all the information I can provide without adding personal identifiable information. I do have all of the emails mentioned on file. 
XX/XX/XXXX I applied for a mortgage loan through Navy Federal Credit Union in the amount of {$300000.00}. Per the preapproval letter I received I was preapproved for {$300000.00}. I later received an email from XXXX XXXX Mortgage Loan Officer | NMLS # XXXX stating she just wanted to reach out and introduce herself as the Loan Officer assigned to my mortgage loan application. She stated that she had reviewed my file and based off of the information that has been provided, I was currently pre-approved contingent upon sufficient funds to close & sufficient assets for reserves. My pre-approval was sent to my online document portal for my use. She went further to state that she would still like to review my mortgage loan application to ensure that she had all of the correct information and answer any questions that I may have. She mentioned that she would be out of the office until XX/XX/XXXX, but her back up would be monitoring her emails. If I was to respond to her email, I would also get an automatic response with her back ups contact information. I did respond to her email so that I would have her point of contacts information which was XXXX XXXX Mortgage Support Assistant | NMLS # XXXX because I did have questions. Nonetheless, with that preapproval, my family and I set out to put an offer on a home. 
XX/XX/XXXX I received an email from XXXX XXXX Mortgage Processor | NMLS : XXXX, stating she was assigned as the Mortgage Processor on my loan. Her email had a series of questions that I needed to answer and a listing of items I needed to produce. All the requested information was uploaded via XXXX within 24 hours. 
XX/XX/XXXX Mrs. XXXX sent me an email stating that if I wanted to move forward with purchasing a home she would need to withdraw my application an have another one opened up because if I was choosing to go with a VA loan, she would have to add my spouse to the application but if I wanted to do a conventional loan my spouse did not have to be on the application. This is because per her words " Louisiana, is something called a Community Property State, in which the VA requires a spouse to be on the application as well ''. I asked her what if my husband did not meet their credit score requirement and if she needed to run my credit again, she told me she only needed to run his credit and then advised that my application would be disapproved if he did not have the proper credit score. Moving on, my husband was added to the new application and new preapproval letter was sent to me dated XX/XX/XXXX in the amount of {$270000.00} because we made an offer on a house that cost less than the previous preapproval. Additionally, the closing date assigned was XX/XX/XXXX. 
XX/XX/XXXX Mrs. XXXX sent me an email asking if my husband had any type of income and how much he paid for child support and that she added him to my file and she gave me his credit score. I responded to her email within a couple hours and let her know that I was standing by for any additional requirements. She later sent an email to verify she had his military retirement pay and XXXX pay correct and at what frequency. I responded to that email as well within the hour. 
Between XX/XX/XXXX through XX/XX/XXXX I had not received a response from Mrs. XXXX although I had been emailing and calling to verify the status of the loan and to ensure there were no more requirements needed of me. I finally reached out to Mrs. XXXX, who was assisting Mrs. XXXX with her clients while she was on leave, to ask for assistance. Mrs. XXXX advised me to send an email to Mrs. XXXX and cc her supervisor XXXX XXXX to the email. I received an immediate response from Mrs. XXXX after that email. 
XX/XX/XXXX I received a call and email from XXXX XXXX Mortgage Processor | NMLS : XXXX, introducing herself, outlining the upcoming process and requesting more information to process the loan. Her email included a copy of my XX/XX/XXXX LES, she stated that the LES provided in XX/XX/XXXX needed to be updated. All documentation requested from her was uploaded via XXXX the same day. 
XX/XX/XXXX I sent an email to Mrs. XXXX requesting confirmation that she did receive the uploaded documents and to also question the target completion date she listed in her initial email as it was listed as XX/XX/XXXX. 
XX/XX/XXXX Mrs. XXXX responded stating that she would be reviewing the documentation I submitted that day and she would let you know if anything addition is needed. And that the actual target completion date is XX/XX/XXXX. 
XX/XX/XXXX I received a Navy Federal Credit Union notification that my appraisal was approved. I was not aware that the appraisal had even been scheduled but was grateful that it was approved. I reached out to Mrs. XXXX for more information and to find out what the next steps were. 
XX/XX/XXXX I received notification that I needed to upload my husbands Retiree Account Statement for proof of his retirement pay, which was an item I had uploaded over a month ago. 
After months of going back and forth with the Navy Federal Mortgage Team assigned to me ( some who introduced themselves and some I had no idea existed ) XX/XX/XXXX I was informed by XXXX XXXX Title Loan Processor II | NMLS # XXXX, that there was an issue with my loan and approval was in jeopardy. She stated that according to the underwriting dept ( no particular person was named ) the ETS on my LES was listed as XX/XX/XXXX and she asked if there was something I could submit stating that I was on contract longer than XX/XX/XXXX. I told her I have an extension that takes my contract to XX/XX/XXXX. She asked me to send that information and I did that right away along with some other documentation she requested. 
XXXX XX/XX/XXXX ( 2 days before the closing date ), Mrs. XXXX called to inform me that per the underwriting department my loan could not be approved because there was an oversight and I needed to have a contract that carries me at least 12 months pass the closing date. I reminded her that I have provided since XX/XX/XXXX, all of the information required to include my LES as well as notified both Mrs. XXXX and Mrs. XXXX that I retire after 20 years of service on XX/XX/XXXX during phone calls and that has not one time been an issue. Mrs. XXXX apologized and that she would forward all of this information to a supervisor. Later that afternoon, XXXX XXXX Mortgage Production Supervisor XXXX NMLS # XXXX, called me to discuss the pending issue. I provided all the same information as outlined in this complaint. She too, expressed her apologies, was very empathetic and stated that she would do all she could to assist. She also informed me that I would have a new Loan Officer XXXX XXXX NMLS # XXXX and between the two of them they would attempt to find a solution that would work best for me even if that meant putting me under a different type of loan. She also asked me for information regarding my student loans and items that were listed on my XXXX under allotments that were never questioned. Later that day Mrs. XXXX called me to introduce herself and discuss with me other loan options. She stated that converting me to a conventional loan would be my best option at this point because they would not be required to ensure that I had income coming in pass the closing date as is required with a VA Loan. At the end of the discussion, I was told that I would be moved to a Navy Federal Conventional Loan under their Military Choice option and a waiver request would be submitted to have the interest rate be 2.5 % as I was initially approved for vice 5 % as listed under that particular loan type. Later that day the waiver request was approved and the interest rate was locked at 2.5 %. 
XXXX XX/XX/XXXX, I reached out to Mrs. XXXX requesting a status of the loan since the closing date was the next day. She responded that, as promised, the appraisal report was converted to conventional and my file was sent back in for final review/clear to close as a conventional loan. 
XXXX XX/XX/XXXX, I reached out to both Mrs. XXXX and Mrs. XXXX via phone and email for a status of us being cleared to close. Mrs. XXXX responded with unfortunately no official decision had been made yet. She stated that Underwriting would not clear it that afternoon knowing your income is ending in < 2 months from closing. She stated that she had escalated this to senior management and they have escalated it higher and that they were doing everything they can to get an exception approved due to Navy Federal 's initial error and oversight. 
XXXX XX/XX/XXXX, I reached out to Mrs. XXXX again for a status via email. She responded and stated that, unfortunately they were still waiting on a response. Underwriting had requested a few more items be adjusted and notated for their final review/decision as they could not overlook the fact that the retirement information was already divulged. She also mentioned that a supervisor was resubmitting the file as she typed the message out to me. 
XXXX XX/XX/XXXX, XXXX XXXX Supervisor Mortgage Loan Ops | NMLS # XXXX, called to tell me that the loan would not be approved. At this time she wanted to discuss with me that it was not just because I was retiring in XXXX ( which was the entire issue up to this point ) but there were other mitigating factors as well. I responded to her that I was not willing to hear any of that because nothing else besides my upcoming retirement date has been an issue nor has anything else been discussed with me. This was a way for Navy Federal Credit Union to cover themselves from this oversight and to give a better reason for disapproving the mortgage loan. She stated that, what she wanted to discuss was not that but she wanted to ensure the real reasons I was being disapproved. 
At that time I told her that I intended to file a formal complaint against Navy Federal for their oversight and for the fact that this has a negative effect on not only me and my family but also the family who planned to sell their home to us as they have already moved out of the state because of this pending transaction. I also let her know that this has mentally and emotionally drained me as it has added to the stressors I already have. If this the fact that I needed to have additional time on my contract to utilize my VA Loan was discussed with me in XXXX ( when I first submitted my LES ) or XXXX ( when I submitted my LES the second time ) or if during any of my conversations with Mrs. XXXX or Mrs. XXXX, then I would not have had an issue. But to wait two days prior to closing to divulge this information and then attempt to cover up the mistake is such a disservice and injustice to all involved especially from a company that prides themselves on being FOR the military. Lastly, I told her that I felt as if I was being discriminated against as a service member who is about to become a veteran. Navy Federal Credit Union is fully aware that all military retirees will receive monthly retirement pay as well as XXXX compensation. I know they are aware of these factors because Mrs. XXXX, Mrs. XXXX, Mrs. XXXX and others all attempted to utilize a military retirement calculator to determine my retirement pay as well as asked me if I had a claim pending with the VA for XXXX. Those two items were to be used to calculate my income pass the closing date per each of these ladies. I did advise that I could not speak on specific amounts because I am not close enough to retirement to have factual data for either of those pays. I also did tell them that I am actively looking for work but because I am not close enough to retirement, I am not being considered for employment just yet. Mrs. XXXX advised me that I would soon receive a declination letter electronically. She also stated that she would be submitting a request to have all of the funds we paid into this process returned. 
XXXX XX/XX/XXXX, Mrs. XXXX contacted me via email to let me know that the {$500.00} paid for the appraisal was refunded to my savings account. She also asked if could resubmit all the receipts from the inspections and XXXX deposit. Those items were sent within a few hours. 
XXXX XX/XX/XXXX, I reached out to Mrs. XXXX via email requesting a status. She responded that the letter still had not been generated and she was still waiting on an answer for the refunds. Later that afternoon, XXXX XXXX called me to introduce himself. He stated that he was XXXX XXXX Manager, she no longer works with Navy Federal, and if I needed assistance with anything to feel free to give him a call on his personal cell phone, which was the number he was calling me from. 
XXXX XX/XX/XXXX, declination letter was received via email. I am refusing to sign because the items listed for the disapproval are not the reason ( s ) I was truly disapproved. Additionally, I have not received any further communication regarding refunds of the fees paid.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with monetary relief