Consumer complaint received 2021-07-28
Company: NAVY FEDERAL CREDIT UNION
State: FL
Product: Mortgage
Sub-product: VA mortgage
Issue: Closing on a mortgage

Complaint:
I am writing you today because of all my concerns about the documents we were required to sign during the closing of our VA IRRL ( Interest Rate Reduction Loan ) REFINANCING WITH NAVY FEDERAL CREDIT UNION ( NFCU ) on XX/XX/XXXX. Our original loan ( VA Loan # XXXX ) with NFCU was originated in XXXX with a VA 30-Year FIXED TERM mortgage at 3.75 % for the amount {$170000.00}. Through the years that we had our loan with NFCU, we never faltered in our monthly payments. Our monthly payment was automatically deducted from our bank account with NFCU. We decided to refinance our mortgage with our existing lender ( NFCU ) on XX/XX/XXXX to lower our monthly payments. We also plan to pay additional amount every month towards the principal in order to pay off the loan more quickly. It took NFCU to process our application for refinancing from XX/XX/XXXX, XXXX XXXX, XXXX from start to closing. 

On XX/XX/XXXX, an Agent from XXXX XXXX called to schedule the date and time for the closing of our refinancing. We agreed to schedule the closing on XX/XX/XXXX at XXXX pm be done inside the NFCU -XXXX XXXX XXXX. Even during the process of our application for this refinancing, I have repeatedly made clear to the loan closing need to have the closing done inside the bank and that documents need to be provided ahead of time so we could review the documents before going to the closing table. Agent said she will arrange the schedule with the bank and that she will let us know. Still with no advance copy of the closing documents I followed up on it. I was informed that the only document they can send in advance is just the Closing Disclosure ( Settlement Disclosure ) and that the other documents will only be provided to us only on the the closing date and time as scheduled. I called on XX/XX/XXXX to follow-up the status of our closing and the settlement agent informed us that we were scheduled to sign the closing documents at XXXX XXXX  and that he will send the Notary Service to our house. I was then informed that NFCU-XXXX XXXX  can not accommodate the closing process due to covid restrictions. That same day around XXXX XXXX, we received an email from the settlement agent containing the UNSECURED AND UNENCRYPTED 142-PAGE LOAN DISCLOSURES DOCUMENTS. I then called the Closing agent, XXXX, to reschedule the closing appointment because we did not have the chance to review them and that I repeatedly requested to have the documents sent to us ahead of time. Again, I was told that they can only provide those documents only on the closing date and that the only documents we can sign are the ones that are handcarried by the Notary Service. WE wanted to cancel the appointment but I was informed that if we cancel our appointment and because notary service is already on her way, we will be charged additional fees. Since we dont have any option, I then requested to move the closing time at XXXX XXXX  on the same day, XX/XX/XXXX. We just entrusted that Navy Federal Credit Union will do the right thing for us. 

The Notary Service, XXXX XXXX, came in the house at around XXXX XXXX  XX/XX/XXXX with all the documents not ready for signing. She was collating the documents while she required us to sign as she compiled the documents. We were rushed to sign the documents because according to her she has to mail the documents before XXXX closes for the end of the day and that she also has an appointment for a choir practice. She was rushing and we felt that we were under duress during the signing of documents. As soon as the documents were signed, she collectedthe signed documents and then left us the the other documents and head out the door. She did not agree to our request to have the documents sealed inside the envelope infront of us. I just FROZE looking at her going out the door with all our signed documents. 

Considering that we are just streamlining an existing mortgage loan with the same lender ( NFCU ), we trusted them that they will process our refinance application more quickly with honesty, integrity, less closing costs involved, and less complications. 

After the closing process, I read and compared it with the documents of our previous mortgage with them and Ive encountered lots of RED FLAGS that bothered me for the past few weeks. AND YES! IVE BEEN CALLING EVERYDAY BECAUSE THERE WERE NO SUPERVISORS NOT EVEN THE PROCESSOR TO RETURN MY CALLS TO CLARIFY MY CONCERNS, NOT EVEN NFCUs 24- REPRESENTATIVES I SPOKE WITH SINCE WE SIGNED THE DOCUMENTS CAN NOT ANSWER MY CONCERNS. REPS STATED THAT THEY WILL RELAY THE MESSAGE TO A SUPERVISOR OR ANYONE FROM THE PROCESSORS TEAM WHO WILL RETURN MY CALL.

I just want to know if these are the standard procedures when securing a 30-YEAR FIXED VA IRRL MORTGAGE LOAN WITH THE SAME LENDER? And the documents that we were required to sign for closing were those prepared by NFCU ( the lender ) or Navy Federal Title Services ( NFTS ) or is it Champion Title Services ( their settlement agent ).

RED FLAG 1 : On the NOTE ( Please Refer to ATTACHMENT 1 ), why are there 2 UNIFORMED STATEMENT DISCLOSURES with different terms added to the original verbiage that NFCU added//slithered. We did not apply for cash out nor 2nd mortgage nor reverse mortgage. We applied for VA IRRL Refinancing with NFCU AS THE HOLDER OF OUR PREVIOUS LOAN THAT WE ACQUIRED FROM NFCU IN XX/XX/XXXX-TO XX/XX/XXXX.

RED FLAG 2 : On the OWNERS AFFIDAVIT ( Ref : ATTACHMENT # 2 ) from XXXX XXXX and Title Company. Notice on the title of the document OWNERS AFFIDAVIT Revised XX/XX/XXXX the File Number ( they used the Escrow account number ) and the property address shows on the form. Borrowers/Owners name ( XXXX XXXX XXXX and XXXX XXXX XXXX XXXX ) and Loan Number are not specified on the document as the Loan Identifiers instead processor or settlement agent used the Escrow Account Number of Current Loan # XXXX ) Again, we never applied for Home Equity Loan, 2nd Mortgage Loan nor Reverse Mortgage Loan. We requested to have the previous loan with NFCU refinanced for a 30 year fixed term VA IRRL. On the Owners Affidavit, we were not allowed to to make any remarks ( N/A ) on the block that is highlighted as you see below. 
There are open spaces with lines on paragraphs 23 and 24. On page 3 of this OWNERS AFFIDAVIT was an additional open space and the signature lines dont designate the names of borrowers/owners of property. We were NOT allowed to write the date of signing the form. To date, we have not receive the satisfaction of Mortgage from the old loan that NFTS settled on XX/XX/XXXX.

RED FLAG 3 : On the TITLE AFFIDAVIT ( Ref : ATTACHMENT # 3 ), address of the property was not typed in and was left blank, incomplete information and the clause on # 13 was shady.

RED FLAG 4 : On the UNIFORM RESIDENTAL APPLICATION FORM, source of xxxx Equity of the property/ and xxxxxx left unended/incomplete. ( REFER TO ATACHMENT # 4 ) RED FLAG 5 : On the CLOSING DISCLOSURE ( page 4 of 5 ) ( Ref : ATTACHMENT # 5 ), There were TWO CLOSING DISCLOSURES THAT WE WERE REQUIRED TO SIGN THAT ARE IDENTICAL BUT ONE HAS LOAN # XXXX AND OTHER HAS LOAN # XXXX, ( which I just noticed those numbers after the closing ), part of the disclosure read Lender may hold PARTIAL PAYMENTS IN A SEPARATE ACCOUNT UNTIL YOU PAY THE REST OF THE PAYMENT, AND THEN APPLY THE FULL PAYMENT TO THE LOAN. I also noticed on the bottom right corner the new loan account number with an added ( -1 ). Does this mean we have first and second mortgage with the same exact loan amount? Please, I need clarification on this too. We requested to have our Escrow account handled by us, the borrowers/owners, but NFCU stated that they dont allow us to handle our own Escrow Account. We have very good standing on our accounts with NFCU as a proof that we are responsible account and loan holders. Is this the standard rule of the NFTS ( Title Company ) or NFCU ( mortgage lender ) or is it the CHAMPION TITLE ( Settlement Agency )? Did NFCU sold the mortgage and the property to NFTS and affiliates? This is making me more nervous because some of their documents designates as as BUYER. BUYER???? 

RED FLAG 6 : On the same page 4 OF 5 of the CLOSING DISCLOSURE under ESCROW, note that the INITIAL ESCROW PAYMENT AMOUNT indicates {$2500.00}, from which this designates the sum total of {$2600.00} + {$800.00} ( less aggregate adjustment of {$960.00} ) under the sub heading DISCLOSURE, Closing Cost Details under Prepaids, {$1900.00} was added for the 12 months Homeowners Insurance Premium for XXXX. Granting that the effective date on the Hazard/Homeowners Insurance is XX/XX/XXXX, then why is it that the amount specified on Initial Escrow Amount is only for {$2500.00}. I INFORMED NFCU ABOUT THE ERROR ON THE HOMEOWNERS INSURANCE EFFECTIVE DATE THAT SHOULD HAVE BEEN XX/XX/XXXX AND NOT XX/XX/XXXX ( refer to ATTACHMENT # 6 ) AND THAT AAA HAVE NOT RECEIVED THE INSURANCE PAYMENT THAT SHOULD HAVE BEEN DISBURSED FROM THE LOAN AMOUNT NOT FROM PREVIOUS ESCROW OR CURRENT ACCOUNT. I was told by processor that they will correct the typographical error and pay the Homeowners Insurance after we close. On the CLOSING DISCLOSURES, HOME OWNERS INSURANCE ( XX/XX/XXXX ) WAS ADDED TO THE LOAN ( Refer to page 2 of 5 of CLOSING DISCLOSURES, Closing Cost Details Item ( G ) -Initial Escrow Payment at closing on ATTACHMENT # 5. Also refer to INITIAL ESCROW ACCOUNT DISCLOSURE STATEMENT, ATTACHMENT # 6 provided for your reference. Please note that to this date, XX/XX/XXXX, Home Owners Insurance payment was not yet received by XXXX Home Insurance. Amount of {$1900.00} was added to the closing cost for the full years payment of our Home Insurance. AND TO THIS DATE, NFCU HAVE NOT REFUNDED OUR ESCROW NOR THE ANNUAL ACCOUNTING OF ESCROW AS REQUIRED BY RESPA despite of repeated requests. 

RED FLAG 7 : On Attachment # 7, NFCU TAX AND INSURANCE INFORMATION SHEET, Processor or Settlement Agent indicated on LOAN PRODUCT TYPE : 30 Year VA ( Escrowed )??? Some documents specify LOAN PRODUCTS TYPE : IRRL. Any taxes due at closing will be paid by the PREVIOUS LENDER. NOTE THAT THE POLICY XXXX EFFECTIVE DATE SHOULD BE XX/XX/XXXX. The payment for this Insurance was already collected and was supposed to be paid after closing BY SETTLEMENT AGENT TO XXXX XXXX. Our previous Homeowners Insurance ( XXXX  XXXX XXXX ) coverage for the old loan with NFCU ( XXXX ) was supposed to end on XX/XX/XXXX and was fully paid for the XX/XX/XXXX to XX/XX/XXXX. I called the loan processor and specified the wrong effective date of coverage for XXXX and I was told that that was just a typographical error. ON THE SAME FORM PLEASE NOTICE THE DISCLOSURE, ANY TAXES DUE AT CLOSING WILL BE PAID BY PREVIOUS LENDER??? FUNDS FOR TAXES WAS ADDED TO THE LOAN AND TAX FUNDS IS NOW HELD BY THE SETTLEMENT AGENT. FUNDS ARE IN THE POSSESSION OF XXXX XXXX XXXX ( SETTLEMENT AGENT ). Please REFER TO TAX AND INSURANCE INFORMATION SHEET ATTACHMENT # 7.

AND what is this Escrowed Loan??? Again, we only applied for one Loan and that is the VA IRRL Loan # XXXX. 

RED FLAG 8 : On a separate form XXXX ( Ref : ATTACHMENT # 8 ), ESTIMATED TAX PAYMENT DISCLOSURE ( FROM XXXX XXXX XXXX, Settlement Agency that NFCU and Navy Federal Title Services are affiliated with ) RE : XXXX XXXX XXXX, XXXX XXXX FL XXXX N/A OUR FILE # : XXXX NOTICE THAT NAME OF BORROWERS/OWNERS ( XXXX XXXX XXXX and XXXX XXXX XXXX. ) AND LOAN NUMBER WERE NOT INCLUDED INSTEAD THEY TYPED N/A. XXXX XXXX XXXX also have disclosure on paragraph 2 of same document regarding tax bill collected on the HUD 1 SETTLEMENT STATEMENT. WHY IS THERE AN HUD SETTLEMENT STATEMENT? IS THIS REQUIRED FOR A VA IRRL LOAN? 

RED FLAG 9 : On the PAYOFF ACKNOWLEGEMENT AND AUTHORIZATION FORM ( Ref : ATTACHMENT # 9 ), File Number XXXX ( Escrow Number is specified as file number ) BUT NOT THE OLD Loan Account # XXXX nor Borrowers Names are not on the document, but our signatures were required and notary service stated we can not write the date nor make any marks. Then what Account and whose account are they paying off if the loan number and our names are not on the document. Those documents look like they were just normal payoff disclosures but reading on the disclosures after the process, NFCU OR NFTS and/or affiliates added or slithered somewhat questionable clauses that we did not recognize during the signing process. 


RED FLAG 10 : On Navy Federal Credit Union CASH DISBURSED VOUCHER FILE COPY ( Ref : ATTACHMENT # 10 ), PAID TO : was left blank ; ADDRESS : was left blank ; CHECK NO. ( blank ) NUMBER : XXXX date ; XX/XX/XXXX DESCRIPTION : SETTLEMENT PROCEEDS FOR : XXXX XXXX XXXX XXXX and XXXX XXXX XXXX NFCU ACCOUNT # XXXX??? WE DONT HAVE ANY ACCOUNT W/ NFCU WITH THIS ACCOUNT NUMBER. What proceeds are they referring to? We did not receive any proceeds NOR the FULL left over escrow from the old account WAS NOT RECEIVED TODATE. 

RED FLAG 11 : On the BORROWER/BUYER AND SELLER ACKNOWLEDGEMENT, ACCEPTANCE AND CERTIFICATION OF SETTLEMENT DOCUMENTS Is this document required for us to sign for VA IRRL Refinancing? ( Ref : ATTACHMENT # 11 ).

RED FLAG 12 : On the INDEMNITY & UNDERTAKING AGREEMENT ( GAP ) ( Refer to ATTACHMENT # 12 ), Navy Federal Title Services, LLC as the agent ; Title No. XXXX ( thats the Escrow Number ), Again, name our names as borrowers/owners of the Property Address : XXXXXXXX XXXX XXXX XXXXXXXX XXXX, FL XXXX are not included on the first nor second page of this document. Instead, the third page where our signatures are required are on one separate page and not included with the body of the document.

RED FLAG 13 : On the HOMESTEAD AFFIDAVIT ( Ref : ATTACHMENT # 13 ), item # 4 Affiant intend to maintain the Propertys homestead status until the completion of the closing of the current sale or refinance of the Property. We did not sell our house, we are just refinancing and should not to end the Homestead Tax Exemption.

RED FLAG 14 : EMAIL SENT BY XXXX XXXX ( XXXX XXXX ) on XX/XX/XXXX, regarding LOAN # XXXX EXECUTED BUYER CLOSING DOCUMENTS AND ANOTHER ONE TITLED LOAN XXXX SECURE : EXECUTED REFI CLOSING DOCUMENTS. Whats the difference? Are there 2 loans associated under our name and property?

When I called NFTS for clarification, I was given the run around Call the loan processor!! then I call loan processor but to no avail. Are these documents standard for aVA IRRL REFINANCING?

Homestead Status on our property even after closing of the refinance. Why cant NFTS be specific that this loan is for VA IRRL and why did they mention on this form CURRENT SALE? There were no cash out involved with this refinancing. Is this form legitimate for a VA IRRL REFINANCING?

We never doubted nor or had any second thought of signing the documents with NFCU not until I read the articles on the Consumer Protection Booklet after the closing documents were submitted. It made me more aware and paid attention to the details of the contract.

How can we protect our records from being used by any unscrupulous loan applicant using our information that Champion Title and Navy Federal Credit Union and their so called affiliates that they already have on hand and on file, as well as the documents/signed sheets that were deliberately separated from the main body of the loan documents such as Rider VA Guaranteed Loan and Assumption Policy with Guaranty, one Loan Mortgage Loan CONDITIONAL APPROVAL and one Mortgage Loan UNCONDITIONAL APPROVAL, Lien Affidavit, Compliance Affidavit, Mortgage Loan Price Commitment Agreement and its addendum, Note ( signature block was separated from the body of document ), FINAL ALTA Settlement Disclosure, Closing Disclosure, Homestead Affidavit, Affidavit of Identity, Mortgage or Fixed Equity Loan Easy Pay Authorization, Consent to the Use of Tax Information form, Borrowers Affidavit, Borrower/Buyer and Seller Acknowledgement, Acceptance, And Certification of Settlement Documents, Proceed Disbursement Sheet, Title Affidavit, Owners Residential Survey Affidavit, Owners Affidavit, Indemnity & Undertaking Agreement ( GAP ), another INDEMNITY AGREEMENT??, Loan Forbearance Affidavit, Florida Insurance Premium Disclosure & Settlement Agent Certification ( in which their Settlement Agent, XXXX XXXX XXXX XXXX XXXX have separated is signatory block from the body of the document, they dont have their address nor phone number on the form itself ), Estimated Tax Payment Disclosures, Payoff Acknowledgement and Authorization, Errors and Ommissions Agreement, Uniform Residential Loan Application, HUD/VA ADDENDUM TO UNIFORM RESIDENTIAL LOAN APPLICATION, IVES Request for Transcript of Tax Return, Marital Affidavit, MORTGAGE, NOTE, are just to name a few of those documents we were required to sign. PLEASE BE AWARE THAT ALL THESE CLOSING DOCUMENTS AND DISCLOSURES WERE E-MAILED TO US UNSECURED AND UNENCRYPTED AT 1321 HRS OF THE CLOSING DATE, XXXX, ONLY A FEW HOURS BEFORE THE ARRIVAL OF THE NOTARY SERVICE PERSON SCHEDULED AT XXXX HOURS. WE REQUESTED THESE CLOSING DOCUMENTS AND DISCLOSURES THREE WEEKS BEFORE XX/XX/XXXX, AND AGAIN SENT A FOLLOW-UP REQUEST A WEEK BEFORE THAT DATE. ARE ALL THOSE DOCUMENTS REQUIRED FOR A VA IRRL 30 YEAR FIXED LOAN? 

ALL OUR PRIVATE INFORMATION ARE MISHANDLED, COMPROMISED, UNSECURE AND NOW BEING DISTRIBUTED TO THEIR MARKETING PARTNERS ( PER PRIVACY NFCU/NFTS STATEMENT ) WE ARE VERY WORRIED THAT THOSE DOCUMENTS WILL BE FRAUDULENTLY USED BY THE HANDLERS OF THE DOCUMENTS FOR WHAT EVER PURPOSE THEY WILL NEED AT ANYTIME OR ANYWHERE. OUR PROPERTY AND OUR PERSONAL IDENTITIES ARE AT STAKE!!! 

WE ARE JUST PRAYING THAT THESE DOCUMENTS ARE IN GOOD HANDS. CAN WE REQUEST THE DOCUMENTS BE NULLED AND VOIDED AS SOON AS POSSIBLE SINCE NFCU/NFTS HAS ALREADY CLOSED ON THE ACCOUNT # XXXX. PLEASE HELP US!!! 

THESE ARE JUST FEW OF THE RED FLAGS WERE SENDING YOU FOR YOUR INFORMATION. THERE ARE MORE ON OUR LIST TO COME. 

REQUEST TO INVESTIGATE AND VERIFY NFCU and NFTS and/or affiliates, ACCOUNT NUMBERS VERSUS VA CASE NUMBERS, ESCROW ACCOUNT NUMBER ( AKA AS THEIR FILE NUMBER ) THAT NFCU/NFTS OR CHAMPION TITLE ARE DELIBERATELY MIXING UP ALL THESE NUMBERS FOR WHATEVER PURPOSE THESE MIGHT SERVE NFCU OR NFTS AND THEIR AFFILIATES. 

ALSO, WE WOULD LIKE TO REQUEST THE REST OF THE COPIES OF THE OFFICIAL CLOSING DOCUMENTS THAT WERE NOT INCLUDED ON THE 106-PAGE EXECUTED FILE DOCUMENTS THAT NFCU SENT US VIA SECURED EMAIL AFTER THE CLOSING. WE ORIGINALLY RECEIVED VIA E-MAIL, UNSECURED/UNENCRYPTED 142 PAGES OF DOCUMENTS FROM THE SETTLEMENT AGENCY, XXXX XXXX XXXX ON CLOSING DAY. We also request them to provide us with the accounting of escrow funds from our previous loan as required by RESPA. 

If there are any documents or any other information related to this case/complain you might need concerning this, please let us know. 

THANK YOU FOR YOUR IMMEDIATE ATTENTION TO THIS MATTER. WE APPRECIATE YOUR TIME AND HELP. 

Sincerely, XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXXXXXX, FL XXXX ( XXXX ) XXXX ATTACHMENTS 1- 14 : 1. NOTE ( NOTICE : This loan is not assumable without the approval of the VA ), pgs 1-4 2. OWNERS AFFIDAVIT, pgs 5-6 3. TITLE AFFIDAVIT, pgs 7-8 4. UNIFORM RESIDENTAL APPLICATION FORM, pgs 9-11 5. CLOSING DISCLOSURE, pgs 12-14 6. INITIAL ESCROW ACCOUNT DISCLOSURE STATEMENT, pg 15 7. NFCU TAX AND INSURANCE INFORMATION SHEET, pg 16 8. ESTIMATED TAX PAYMENT DISCLOSURE, pg 17 9. PAYOFF ACKNOWLEGEMENT AND AUTHORIZATION FORM, pgs 18-19 10. NFCU CASH DISBURSED VOUCHER, PGS 20-22 11. BORROWER/BUYER AND SELLER ACKNOWLEDGEMENT, ACCEPTANCE, pg 23 12. INDEMNITY & UNDERTAKING AGREEMENT ( GAP ), pgs 24-26 13. HOMESTEAD AFFIDAVIT, pg 27 14. EMAIL SENT BY XXXX XXXX ( XXXX XXXX ) on XX/XX/XXXX, regarding LOAN # XXXX EXECUTED BUYER CLOSING DOCUMENTS

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