Consumer complaint received 2022-08-09
Company: NAVY FEDERAL CREDIT UNION
State: IN
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I am a longtime member of Navy Federal Credit Union, as well as holding the professional finance designations of XXXX, XXXX, a Big XXXX University XXXX, and XXXX years in XXXX XXXXXXXXXXXX XXXX XXXX XXXX XXXX level at such institutions as XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX as well as at XXXX XXXX XXXX XXXX XXXX 

When I decided to do my new mortgage with Navy Federal ( over other vendors ) last XXXX of XXXX, it was because of ( a ) my great experience to date with them, and ( b ) the fact that it was a members-owned Credit Union ( with all that that implies about putting member-owners ahead of quarterly profits ) and ( c ) the fact that it's closely affiliated with XXXX XXXX personnel or XXXX XXXX at the highest levels of NFCU ; this conveys a certain expectation for the XXXX creed of acting honorably. ( d ) The fact that the mortgage rate could be locked for a year was also in NFCU 's favor, given that the mortgage was for a house-build which would take almost that long. On my part, at the time, I brought a XXXX credit score of over 800, and XXXX debt, not even a car loan. The issue is : With my background, and abhorrence for having my mortgage sold to some other party, in which decision I would have no say, I therefore asked the NFCU Mortgage Department XXXX XXXX officers, more than once, if my mortgage would be sold. In fact, I turned down better terms with XXXX XXXX because they said up front that they'd sell my mortgage to XXXX XXXX. I was verbally told, by the XXXX NFCU officers, that it would NOT do this, and I asked more than once, because I'm careful that way and double-check on important matters. I have since been told that NFCU 's unilateral right to do so, was in the disclosure documents -- it was, as a possibility, but the verbal assurances to me were that that would not happen. As we all learned in our business law courses, verbal representations are legally binding, to say nothing of morally so, esp. for a firm that holds itself out to the public as hewing to the XXXX 's standards of honor and duty. And the verbal promises are on recorded lines at all financial institutions such as Navy Federal, as required by FINRA and other regulatory authorities. I expect that NFCU keeps those recordings in its archives for several years, as XXXX did. My loan closed in early XXXX, XXXX. Yesterday, on XX/XX/XXXX, I was flabbergasted to receive a letter in the mail from XXXX XXXX, informing me that Navy Federal had, indeed, sold my mortgage to XXXX XXXX, and probably the day after it closed -- why wait, when one can sell out the member-owner ASAP and collect a fat fee for doing so, into the maw of the XXXX XXXX machine ? XXXX XXXX  referred me back to my mortgage originator, and would give me no information, so I called several " supervisor '' people at NFCU, including three mortgage department supervisors who refused to give even their last name 's first initial, to distinguish them from other " XXXX '' XXXX in the same department, and was told, effectively, too bad, so sad, NFCU is not walking it back, have a nice day. The three totally unhelpful mortgage supervisors with whom I talked and who threw up, each of them, the roadblock of refusing to advance my request to the CEO 's office, or to do ANYTHING other than " no, and have a nice day '' are : XXXX, XXXX ending in XXXX, XXXX, XXXX ending on XXXX, and XXXX, XXXX ending in XXXX. 

So here 's what I'm wanting, if anyone at NFCU can be contacted to even respond : ( 1 ) A review, post-haste, of all verbal recordings of all conversations between myself and the NFCU XXXX since the mortgage application process was started last XXXX, XXXX. Presumably, NFCU 's legal department at least requires the keeping of these recordings. 
( 2 ) A changing of training and onboarding policies in the XXXX department, immediately, whereby each XXXX  officer is REQUIRED to VERBALLY disclose to member borrowers, AT EACH INTERACTION, that ( a ) NFCU CAN and in the majority of cases, WILL sell the ownership of the mortgage loan to another party, including, but not limited to, XXXX XXXX, XXXX XXXX, or the VA, and ( b ) that NFCU CAN and in the majority of cases, WILL sell the servicing of the mortgage loan to another party. ( which they've not yet done -- waiting for the other shoe to drop, on that one ). Instead, the opposite -- that of verbally dangling the expectation to the member that these events will NOT occur -- is the current practice. 
( XXXX ) A timely reply from the CEO 's office, which will doubtless not be forthcoming, since I wasn't even given any access to that office, after trying to reach it at least 3x today ( 4 ) Given # 3 above, I'm filing this complaint against NFCU ( with the CFPB ) for roadblocking any and all abilities to complain directly to their organization 's senior management, or even middle management, on this matter. 

I will be breaking my current long-tenored CD with NFCU, waiting for the short-term ones to mature, and withdrawing all of my funds from the organization. Bad behavior does not get rewarded and I am not about to continue to do so. At less than a XXXX dollars, it's not much, I admit, but I have better places to put it than with an organization that acts dishonorably and then refuses to make things right or offer any redress whatsoever, and throws up roadblocks when I try to reach senior management. I will also doubtless be paying off my mortgage materially early, since the only way to thwart those who've thwarted me, and who now hold my loan or the service contract, is to part company and deprive them of the earnings therefrom, and impose the disadvantage of a mortgage prepayment onto them and their mortgage-purchasing partners.

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