Consumer complaint received 2021-01-19
Company: NAVY FEDERAL CREDIT UNION
State: HI
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
The Navy Federal Credit Union filed a " Statement of Credit Denial, Termination or Change '' on XX/XX/2020 based on errors in their mortgage loan application file. The application has been approved and closed on XX/XX/2020. I have not received a retraction of the credit denial as requested. I filed a complaint with CFPB in late XX/XX/2020. The actions of CFPB were a major assist to re-opening my loan application and the successful closing of the loan. Unfortunately, the process was still flawed on every level. Two of my primary complaints, as originally filed and supported with 30+ jpg attachments, was the lack of attention to details of the application and the inaccessibility of personnel for problem resolution. 
The NFCU response to my CFPB complaint lacked substance/details. Part of the problem is that the NFCU mortgage loan process is centralized in XXXX, Florida. If that provided : 1 ) enhanced oversight, 2 ) a streamlined and well defined/well documented application and loan processing result, I would have never had a complaint. Unlike most other mortgage companies/banks/credit unions, there are not any local NFCU mortgage loan processors to meet with the applicant. Almost all interaction between the applicant and the loan processor was by email, responses were 10-14 days later during the first 6 months my application was " active ''. Electronic document submission was the requirement. An obstacle in itself and there was not a supported alternative for seniors without a scanner. My phone calls were rarely returned, complicated by being 4-5 time zones away, and XXXX meetings were not an option. 
Lack of attention to details was rampant. For example, the letter from XXXX XXXX, Vice President, Underwriting, dated XXXX XXXX, 2020, regarding my complaint to the CFPB and the appeal of my loan denial and the " Statement of Credit Denial, Termination or Change '' [ that was sent to the credit bureaus ] was addressed to : XXXX. XXXX XXXX XXXX, XXXX, XXXX XXXX XXXX. ). In the vernacular of the day, XXXX. A XXXX XXXX of the Navy Federal Credit Union can't even get the branch of service correct! 
I received a pleasant phone call and 3 follow up emails on XX/XX/XXXX from XXXX XXXX. One of the things we discussed was the requested {$70000.00} cash-out to pay off a 1st mortgage on a second property. There had been confusion at NFCU regarding that much cash-out and the reason for it. I asked Ms. XXXX to review pages 2 and 3 of the " Uniform Residential Loan Application '' submitted on XX/XX/2020. On page 2, under Section VI. Assets and Liabilities, under liabilities I listed {$68000.00} [ a 1st mortgage ] with XXXX XXXX XXXX and {$230000.00} [ the condo 1st mortgage ] with XXXX XXXX XXXX. On page 3, under Section VI. Assets and Liabilities, Schedule of Real Estate Owned, I again listed both the condo and the other property with the amount of mortgage/liens on each. And under section VII. Details of Transactions ( d ) Refinance ( incl. debts to be paid off ) was {$290000.00} the combined mortgages. Apparently, the first loan originator, XXXX XXXX [ never any interaction ] and the 2nd loan originator, XXXX XXXX, did not read past the first page request for a refinance of the existing loans. [ There are several emails to substantiate. ]. In Ms. XXXX 's second email, she states, " I also corrected your file to reflect XXXX cash back to you at closing. '' The loan originator/processor that did shepherd the loan to closing was XXXX XXXX. She was excellent! First assigned on XX/XX/XXXX, the closing was XX/XX/XXXX. She overcame numerous issues/problems but she was willing to call on the phone and responded promptly to emails. The first problem she encountered was the XXXX cash-out. I had to email copies of the " Uniform Residential Loan Application '' and forward Ms. XXXX XXXX email before Ms. XXXX could find the correction in the NFCU electronic document file. She revised the rate lock and loan commitment agreement, documented unearned income that had been previously noted but not documented as acceptable by the underwriters. The underwriters apparently cold not reconcile my 800+ credit ratings from all 3 credit bureaus, with monthly payment in full of all credit cards and both mortgages [ totaling $ XXXX/month ] with a monthly income of {$8000.00}. The refinance was 66 % loan to value on the condo, paid off the commercial loan in full and reduced my monthly mortgage payments from {$3200.00} to an estimated {$1200.00}, a {$1900.00} reduction. It wasn't until I revealed a recent inheritance of {$360000.00} in stock that the underwriters finally approved the loan. 
The other issue in my CFPB complaint was the frequent calls from NFCU apologizing for the long delay in processing my loan application and asking if I wanted to withdraw my application and apply elsewhere. What does that imply to you? The loan processor didn't call or return calls but other NFCU staff did call frequently and ask if I wanted to withdraw my application. Makes me wonder how many applicants did withdraw their applications and go elsewhere. 
I have hereby met my responsibility of " see something, say something ''. It is not my responsibility to conduct internal audits or provide federal oversight. I agree, " to error is human, to forgive is divine. '' But part of forgiveness is to take responsibility for your actions or inactions and to accept the consequences, regardless of your station.

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