Consumer complaint received 2022-04-27
Company: NAVY FEDERAL CREDIT UNION
State: VA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
I initially locked my rate for a 30 year conventional loan on XX/XX/XXXX with the lock expiring XX/XX/XXXX as my home was estimated to be completed the first or second week of XXXX. I was advised from the builders sales representative on XX/XX/XXXX that due to manufacturing shortages because of Covid the builder had a delay in getting siding and my close date would be XX/XX/XXXX. I immediately called NFCU to inquire about extending my rate lock and ended up speaking to XXXX and decided to change my loan term to a 15 year conventional loan instead of the 30 year. I signed the 15 year rate lock on XX/XX/XXXX at a XXXX rate and have since been inquiring about NFCU matching the builders incentives offered of {$5500.00} XXXX. Below are the major concerns I have that havent been appropriately handled or addressed. 
XXXX. Since I am changing the loan term, wouldnt the original rate lock be considered null and void, as Im using a different term entirely? I would assume that with this change, that would allow me to lock the rate for the new term at the XXXX rate listed on the LE I signed on XX/XX/XXXX for 60 days. Which we be a lock valid through on or around XX/XX/XXXX. If this is not the case, please send me documentation and justification stating otherwise. I am not getting valid answers or justification from NFCU representatives. In addition, NFCU has a fiduciary responsibility to handle this process in an ethical manner. Why would NFCU ask the consumer to sign a LE with a lock expiration date prior to the known closing date? If this is standard practice, NFCU has a duty to at that time advise the consumer of any additional fees or financial impact for the consumer before signing. NFCU not been able to answer my questions as to what will happen since my close date is 4 days after my lock expiration ( which is 60 days from the lock on the 30 year term ). I have been told many different things might happen from NFCU loan officers and resolution specialists, but no one will provide me clear expectations of what the process is. I have been told by NFCU, there XXXX be no fee or cost to extend the rate lock since the delay in closing is due to Covid related manufacturing. I have been told by NFCU there may be a XXXX penalty to extend the rate for 30 days. I have been told by NFCU resolution specialist XXXX that I might have to pay the interest rate published on the day of closing. This can not be meeting regulations. As I explained to NFCU, there is a significant financial impact that I will have for the next 15 years because of this and I need a resolution. It is not feasible for me to not know what my interest rate will be and/or what, if any fees or penalties are associated with changing the lock date. And the fact that the loan officers and resolution specialist can not provide me with information is not acceptable. 

XXXX. I want to be very clear regarding the {$5500.00} XXXX that is being offered by the builders lender. NFCUs website refers to builders incentives being matched if listed on a loan estimate from the competitor. I did as the NFCU representative advised, and reapplied with XXXX knowing that their rate was higher than NFCU ( and I even mentioned it in my emails to NFCU ) in order to get an updated LE showing they would offer the {$5500.00} on the 15 year product, so that NFCU would match the {$5500.00} incentive. I certainly wouldnt have done that without instruction and had my credit re-pulled again if I wouldnt have been advised that was what was needed for the {$5500.00} XXXX to be matched by NFCU. NFCUs website doesnt mention that the builders incentive is only able to be matched if NFCU cant match or beat their rate. These are two separate benefits advertised on NFCUs site. The match or beat the competitors rate is one benefit. Matching builders incentives is listed as another separate benefit. 

I am beyond disappointed and physically sick over all of this. I am scheduled to close on a home in just over 30 days and multiple NFCU representatives have given me conflicting information and are not able to provide me answers to what I assume are pretty common and basic mortgage questions. A loan term change, rate lock change, and their misleading website which would have any consumer thinking the builder incentive match is separate from the rate match benefit. Either way, this not only will have a direct financial impact on me by me potentially having to pay a higher interest rate for 15 years, not knowing if there are fees/penalties to change my lock expiration date. I have been told by NFCU that they dont know the answers to tell me and someone else will get back to me. Its absolutely unethical and illegal. This can not fall within the laws and regulations put in place to protect the consumer. Misleading advertising, employees who are giving conflicting information, not able to get my questions answered, all while interest rates continue to rise and I feel like no one at NFCU will assist me. This is time sensitive and has major financial impact on me and my life, but I am not getting help or answers. Im beyond frustrated and would like this to be reviewed in its entirety. I have multiple emails that Id be happy to share. I would like for a thorough investigation/audit on NFCUs handling of this mortgage process and their business practices.

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