Consumer complaint received 2019-03-05
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: VA
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
I have a Home Equity Line of Credit ( HELOC ) with USAA Federal Savings Bank on my home located in XXXX, NC XXXX. The HELOC was approved on XX/XX/XXXX, for {$60000.00}, and then in XXXX for an additional {$20000.00}, totaling {$80000.00}. The line of credit was subsequently reduced by USAA due to the property value on XX/XX/XXXX, to the amount of {$49000.00}. I applied for a refinance with cash out loan on my home with XXXX in XX/XX/XXXX, with a loan closing date of XX/XX/XXXX, and was informed on XX/XX/XXXX, by XXXX that USAA ( XXXX XXXX, Home Equity Lien, XXXX ) reported that my line of credit is {$80000.00} and is accessible up to {$80000.00}, the pre-reinstatement limit. XXXX ( XXXX XXXX, Mortgage Processor-XXXX Ext. XXXX ) advised I could not proceed with the original loan amount for the cash out I wanted and would need to reduce the amount based on USAA 's reporting as I was over the loan to value. Bottom line, I am not being provided the full {$80000.00} pre-reinstatement HELOC borrowing limit while simultaneously being blocked from refinancing the loan due to insufficient loan to value ratio based on a borrowing limit I have no access to. USAA provided via email on XX/XX/XXXX, a letter dated XX/XX/XXXX, stating they were " unable to fully reinstate your borrowing privileges on your line of credit at this time due to your property value, however, we're able to reinstate your borrowing privileges at a lower credit line of {$49000.00} ''. The contract I signed states in section 21 ( a ) the line may be temporarily prohibited from obtaining additional advances or reduced during the period the value of the property securing the line of credit declines significantly below its appraised value. In order to reinstate the credit privileges under the original terms of agreement, I must send a written request to the effect. The credit privileges will only be reinstated if USAA determines that a condition which caused them to reduce the credit limit no longer exists. I contacted USAA via phone on XX/XX/XXXX, and requested that they correct the reporting or reinstate the full {$80000.00} limit. I was told that could not be done. The liens recorded by USAA in the title search show {$80000.00}. The equity team at USAA informed XXXX XXXX, Title Curative Specialist for XXXX ( XXXX ) XXXX ), that three mortgages show on the property, but USAA considers the two mortgages to be under one loan for a total of {$80000.00}. The subordination will have to reflect the book and page of each Equity Loan that was recorded in the land book and that he could clear the title based on this information. On XX/XX/XXXX, my attorney ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX ( XXXX ) XXXX ( file # XXXX ) sent USAA a letter regarding the HELOC and demanded USAA review my account and either make the full {$80000.00} borrowing limit they are reporting available to me or correct their reporting to match the actual borrowing limit available to me under this HELOC. USAA was provided 15 days to take corrective action. I phoned USAA and was told by the representative USAA received the letter on XX/XX/XXXX, and their legal team is still reviewing the account and have time to respond. I was contacted by XXXX today, and asked if I had an update from USAA. I contacted my attorney this morning to inquire if a response from USAA has been received. To date, USAA has not responded to my attorney 's letter nor have they responded to XXXX. My rate has expired and my closing date has passed. I am now subject to a higher rate based on the extension that was provided and the passing of the closing date which was pushed out to XX/XX/XXXX, to allow USAA enough time to respond based on their own documents and information provided to XXXX.

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