Consumer complaint received 2023-08-24
Company: NAVY FEDERAL CREDIT UNION
State: VA
Product: Mortgage
Sub-product: VA mortgage
Issue: Closing on a mortgage

Complaint:
I have been pre-approved for a VA mortgage to purchase a home at my next duty station since XXXX of XXXX. This was used to shop for a home at up to this pre-approved price since, with finally finding a home in XXXX. 
Shortly after, the ratified contract was sent to NFCU XXXX on XXXX XXXX. 

On XXXX XXXX, NFCU requested clarification on the 4 credit report inquiries that occurred on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX. 
As well as an explanation about a previous address which I had not resided in for over three years. 

I explained that the 4 inquiries were : NFCU, another company that I was shopping with for mortgages and another mortgage company which I was looking at for potentially assuming a VA mortgage on, and the last was again NFCU. 
And I explained that the previous address, from more than three years ago, was a previous home that I had a mortgage with NFCU, and sold that home, several years ago. 

On XXXX XXXX, more information was requested from the underwriter for the following : Refi has occupancy of current primary as Second Home, please confirm which application is correct as occupancy must be the same on both applications. You are going to be renting out this property, right? By any chance are you going to be renting to a family member? 
On Refi app the borrower has 2 dependents listed ages XXXX. None are listed on this application, please determine which is correct as the LES does show that he is receiving BAH w/dependents however it lists w/Spouse. Please obtain an explanation, is he married? 
Estimated Flood Insurance needs to be added to the Escrow info table as it must be included in ratios Do you have a quote for flood insurance and homeowners yet? Can you send them to us? 
Maintenance fees for XXXX XXXX need to be included in ratios. Do you have any documentation on how much they are? 

I responded that same day to these questions as follows : My current address is up in the air as I am traveling for the next two months. I am refinancing my current home to become a second home because the plan is to reside at the new purchase house as my primary house since I am moving to XXXX XXXXXXXX Florida. 
I plan to be renting out XXXX XXXX XXXX. as soon as its ready to be rented, I do not yet have tenants identified or available yet. 
I do have two dependents ; my daughter whos XXXX, my son who is XXXX, and I am not married. The LES lists BAH with spouse. I dont know why thats been corrected several times thats just how they leave it listed. I dont know why. 
See attached Flood quote. 
Ill send you documentation of maintenance costs for XXXX. 

I reached out on XXXX XXXX, to inquire why they had listed my monthly income at about {$2500.00} a month less than what I receive ( they already had my monthly payment sheet ). 
We discussed this over the phone and I was told that the underwriter didnt understand what a portion of my income was, that was listed on my monthly pay sheet, and said that they wouldnt use it because they didnt know what it was. 
I explained that it was a monthly entitlement that I would receive for the remainder of my career and have received this benefit since XXXX. I also explained that this information is posted and available to the public based on the DoD military pay. 

I provided the requested documentation for the XXXX maintenance dues on XXXX XXXX. 
My loan officer responded asking how often I have to pay the maintenance fees. 
I responded that same day, again, that I pay maintenance fees quarterly. 

Between then and XXXX, the following : The underwriter still would not consider the additional money that is part of my monthly income, and asked that I provide proof that this is a monthly benefit and that it would continue. 
After several phone conversations with my loan officer, and loan processor. I was asked to provide the end of year LES for last year and the contract that shows that I was supposed to receive this money. 

On XXXX XXXX, NFCU informed me and my realtor that the appraisal was completed and sufficient. That a loan processor would be assigned, and that the underwriter was requesting further information. 

I provided the end of year LES paystub for XXXX, and the contract for this money that was completed on XXXX XX/XX/XXXX. 

XXXX XXXX, my loan processor informed me that underwriting was still reviewing my application, and that updated flood and homeowners insurance policies were required before the loan could be closed. 

On XXXX XXXX, I informed NFCU that I would no longer be considering their business for the refinance of my current home since they had lost my confidence in handling my loan and have requested excessive information and delayed the refinance to longer than two months, and changed the previously locked in rates with a 1.5 % increase without my approval. 

That day, I also discussed with my loan processor, again, questions from the underwriter, who now wanted clarification if I was married, paying alimony, or child support. 
My loan processor and I agreed that maybe providing my final decree of divorce should be sufficient for this since Ive answered these questions repeatedly over the past two months. 
I provided a copy of my divorce decree on XXXX XXXX. My loan processor informed me that he was going to adjust my income listed to BAH without dependents in an attempt to ameliorate the underwriters questions about my marital status and payments. 

My loan processor resubmitted my loan for review on XXXX XXXX. 

XXXX XXXX, I provided updated wind, flood and homeowners insurance information with planned begin dates to match our current closing date of XXXX XXXX. 
XXXX XXXX I spoke with the loan processor who had not yet heard back from the underwriter. 

XXXX XXXX, I spoke again with my loan processor to see if there was any way to expedite this since the final day for financing approval is XXXX XXXX. 
He informed me that he was still waiting on the underwriter, who was still questioning some of my pay. And now was requesting a lease agreement for my current home. 
I informed him that I dont have any lease agreements, as I havent been able to begin the process of getting things in order to be able to rent out my current home. 

On XXXX XXXX, I again discussed this with my loan processor who informed me that there was no change. 
Based on this, I asked to speak to someone who could help to do something about this issue as the same underwriter has had access to my loan for over 45 days, had also been the same underwriter who had disapproved the previously conditionally approved refinance and was still delaying my loan. 
XXXX XXXX, I spoke to his supervisor, XXXX, who collected information from me about this process, the timeline, and the number of issues that had arisen. 
She said she would call me back today, XXXX XXXX, with an update. And she would speak to the supervisor of the underwriter. 



I have been pre-approved for a mortgage with my current income at up to $ XXXX for 5 months, ratified contract for less than this, at $ XXXX on XXXX XXXX, conditional approval on XXXX XXXX and the underwriting is still reviewing my mortgage. 
The deadline for financing approval is two days from now, and I am scheduled to move into the new home in two weeks. 

This process has placed an undue burden on myself, all while navigating the difficult process of military PCS. 
I am disappointed in the way I have been treated by NFCU.

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