Consumer complaint received 2020-12-28
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
In XXXX of XX/XX/2019I refinanced my FHA home mortgage that was owned by XXXX XXXX XXXX. My refinance and loan were handled by USAA. I worked with a loan officer on the terms of my refinance. The goal was to both get rid of PMI payments as well as lower my monthly amount due. Over this correspondence my predicted estimates were reasonable and agreeable in that it would make sense for me to refinance as the original lender could not beat USAA 's offer. See image one that clearly states that the estimated total includes property taxes. 

Even looking at my closing cost details of the document that I signed for the new loan agreement nothing looks off as to the issue that later became apparent. See image two, the documents clearly show that Property Taxes are shown as both " ( 6 mo. ) '' and " per month for 6 mo. ". This was also explicitly expressed by myself to the loan officer in the initial correspondence about refinancing my loan. My loan was signed and closed XX/XX/2019. 

My payment was as expected until XXXX. On XX/XX/XXXX, the mortgage server XXXX did an escrow analysis that projected that my escrow account would be underfunded and that my payment would be increased. There was no communication of this action or increase, I logged into my account that month to see that my payment had increased XXXX dollars or 20 % increase. 

I initially contacted USAA support to explain why this was the case. They referred me to XXXX XXXX  for support as they weren't the loan servicer. I contacted XXXX at least 3 times asking for them to explain why my payment and escrow account would have any issue barely 6 months after refinancing. I have purchased 2 homes prior and never had an issue. Finally they expressed that there was an error in the calculation of the origination of the loan when it was funded and that they only serviced the loan and that USAA are the ones that handle the loan origination. 

So back to USAA support, multiple calls and multiple personnel, eventually I was told to contact the person who was my loan agent during that time. I contacted her and asked for an explanation as to what happened. I did not receive a response for a week so I contacted her manager, then loan agent called the following day. She expressed that they had made an error and had calculated my semi-annual property taxes on an annual basis. By that calculation the difference in what my projected monthly payment would be was substantial. Substantial enough that I would not have refinanced with USAA nor would it have made a difference in my payment, as I am now paying exactly the same amount as I was before refinancing. 

She said that there was nothing that they could do as the loan was closed and referred me to their Executive Resolution team to see if they could help resolve this. After being sent to this new team and them reviewing my account and what had happened they expressed that while they messed up and calculated the costs wrong, that they could do nothing. 

As a consumer and researching this issue, this is not only predatory behavior, but unconscionable. USAA has a team of lawyers, they have entire departments and specialized teams that review loan applications at multiple steps. I look at both the documents I was sent prior to my loan closing, and the actual closing documents and see that it clearly states that there is the distinction of the property taxes listed amount is for semi-annually or 6 months. 

How is it that there is no liability for a financial firm on this. Of course they are going to drive down any payment or cost to the consumer that will make them think they may be getting a better deal, when reality there is no risk to them for funding a miscalculated loan where the burden of the error only falls directly on the consumer. I don't use their services to be hoodwinked into a deal, I assume in good faith that my best interests are being looked out for when I choose to do business with a company. 

After their executive team failed to resolve the issue besides shrugging their shoulders, I asked to speak with any VP over the departments, supervising leads, or somebody other than someone that is going to tell me " yeah sorry we made and error but we can't do anything ''. 

In short, I was given a payment of XXXX  monthly, after six months this amount rose to XXXX without communication or explanation. Only after calling and investigating did I find that the origination of the loan by USAA the property taxes of XXXX semi annually had been calculated as the annual amount. Their error, will cost XXXX dollars over the life of the loan. How is it that a regulated financial institution such as USAA, can't both be held liable or even offer some type of recourse for an error that they made.

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with explanation