Consumer complaint received 2020-12-21
Company: PENTAGON FEDERAL CREDIT UNION
State: WI
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
In XXXX of 2020 I contacted Pentagon Federal Credit Union ( PenFed ) regarding a mortgage loan for a second home. I spoke with XXXX XXXX and I was completely honest about all of my financial information. After all of the financial information was figured out, I was told that I was pre approved for a loan of $ XXXX. Due to the fact that I had been pre approved, I started the process of purchasing a home. Once the home purchase went under contract, I sent the contract to XXXX. PenFed was very sporadic with communication, but at no time during the process did they indicate that there was a problem with the loan. In XXXX PenFed contacted me to set up and pay for an appraisal on the home. I paid that and the appraisal was done on XX/XX/XXXX. Again, no mention of any issues with the loan. The closing for the purchase of the home was scheduled for XX/XX/XXXX. The week prior to closing I started getting emails from the title company saying that PenFed hadnt sent any documentation and refused to reply to any of their inquiries. I contacted XXXX and he referred me to XXXX XXXX. XXXX was difficult to get a hold of and didnt seem to want to respond to me either, but when I did get a hold of him he was very elusive and had a hard time answering some of the questions I had. Two business days before the closing, the title company contacted me again and said they still had not heard from anyone at PenFed. I tried desperately to get into contact with someone at PenFed. I emailed and left phone messages with XXXX, his supervisor XXXX XXXX and her supervisor XXXX XXXX. I got no response at all. On the Sunday before the closing I did get a confusing email from XXXX, which did not mention any problem with our debt ratio, but confirmed that we needed to bring $ XXXX to the closing. The day before the closing I tried to contact all of these people again and again I got no response. Finally around XXXX XXXX  the day of the closing I was able to get a hold of XXXX by phone and she basically told me that we were not going to be able to close, but that the loan was scheduled to close on XX/XX/XXXX. With this information I was able to request an extension from the seller and move the closing date to XX/XX/XXXX. On XX/XX/XXXX, four days before the scheduled closing, I got a call from XXXX saying that our debt ratio was too high and she didnt know if we were going to be able to get the loan approved. I stand to lose over $ XXXX and the house that I am trying to purchase not to mention the time, effort and stress this whole situation has caused me and my family. PenFed obviously knew from day one that they werent going to be able to approve this loan, but they lied and misled me for six months. The lack of professionalism and absolute disregard for honesty and decency that everyone at PenFed has shown here is disturbing and disgraceful. Its no wonder people dont trust any American institutions.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation