Consumer complaint received 2021-02-01
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: GA
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
I am a XXXX veteran and I applied for a VA refinance loan with USAA XXXX on XX/XX/XXXX. I was told due to the pandemic it would take about 90 days to close and I wouldn't need to provide anything to the bank except proof of home owners insurance. 
Due to the refinance and the request of the lender to provide insurance, I decided to get different quotes to compare the cost, coverage and service. I called around and got quotes from multiple carriers including usaa 's insurance department. I had not made a decision on which policy I was going to take for the new loan or if I even really wanted to do the loan because I was not sure if it was the best financial decision for my family and at this point in time USAA did not provide me with documents with actual numbers ; according to the loan officer they had to wait until 3 days prior to the XX/XX/XXXX tentative date to provide me documents in writing to see what was being included in the loan. 
To my surprise on XX/XX/XXXX USAA went ahead and paid {$2500.00} USAAs ' homeowners policy which was only suppose to be a quote from my escrow account leaving it in a negative balance in excess of XXXX XXXX dollars. 

I immediately alerted the bank whom is also the loan servicer and XXXXUSAA said there was an error they paid and funded the new escrow account for the possible new loan insurance from my current loan account and agreed to refund the money. 

I reached out to them again for the XXXX or XXXX time on XX/XX/XXXX for the status of the refund to ensure my escrow account would have sufficient funds for future insurance and tax payments. I was again greeted with another shocker. USSA issued another check to themself from the negative account making to more negative and the first check that was issued to them # XXXX on XX/XX/XXXX was cashed by the bank USAA. USAA another check to themself from the negative account in the amount of {$2500.00}. This payment was made to themselves before they paid my currently owed taxes. 
My escrow account is still incorrect and there seems to be no remedy to this issue at the bank level, bank insurance level or with the bank servicer. Now the bank is punishing me because I decided that the refinance was not a good fit for me, however since I expressed my concern with the insurance policy being issued without my permission and I change my mind about the loan my access to my loan online has been revoked. 
Im more concerned because this is the second year in which the bank has performed non approved transactions on my escrow account. Even with specific instruction from me not to fund insurance transactions from USAA insurance to the servicer ( XXXX/USAA ) the bank seems to process and take funding from my escrow. 

I have no resolution in sight if I continue without reporting this activity. Apparently many other veterans are being taken advantage of by this according to the company 's representatives in customer service at XXXX. They have expressed this to me and I am concerned that I am being victimized by this bank. I believe my mortgage loan was also a high cost and I was taken advantage of by this lender so there is an incentive for them to have me refinance to cover up whatever they may have done when my loan was originally completed. PLEASE PLEASE PLEASE look into this. USAA may be misappropriating millions from veterans, XXXX XXXX, and all their family.

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