Consumer complaint received 2018-04-07
Company: NAVY FEDERAL CREDIT UNION
State: AL
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
I

n XX/XX/XXXX, XXXX XXXX was the Mortgage Loan Officer at Navy Federal Credit Union responsible for processing a VA mortgage for my husband and me. Although I was included as a borrower when we submitted the online application, XXXX XXXX deleted me because she said it was a requirement since I was not a veteran. I asked if this would affect the mortgage in any way, especially in the event something happened to my husband and XXXX XXXX advised I had nothing to worry about because I would still be on the Deed. ( An email between XXXX  and I dated XX/XX/XXXX documents the deletion but retaining my XXXX  income. My husband and I signed all VA contract addendums. ) On XX/XX/XXXX I signed all mortgage documents as my husband 's Attorney-in-Fact because he was unavailable on assignment overseas.

On XX/XX/XXXXthe XXXX  advised that my husband had died while assigned as Director of Emergency Response for XXXX XXXX XXXX Area in XXXX. I notified Navy Federal Credit Union of his death.

On or about XX/XX/XXXX, I was advised by Navy Federal personnel that I would lose access to the mortgage account because my name was not on the mortgage.

When I returned from XXXX  after making arrangements for my husband 's property and body, I again contacted Navy Federal.

On XX/XX/XXXX, I received Navy Federal 's solution to the problem : a hyperlink to NFCU form XXXX, an Internet Account Access Service Application. This was a 16-page form that required my dead husband 's signature so Navy Federal could provide me with online access to the mortgage account.

I contacted my assigned Survivor Support counselor, XXXX ( XXXX XXXX XXXX XXXX ) on multiple occasions and was advised that she had contacted the Mortgage Servicing Department and submitted mortgage assumption requests. ( XXXX  has failed to respond to voicemail and email requests for assistance since XX/XX/XXXX. A coworker in the Survivor Support department stated that they had 'done all they could ' because they had no influence over the Mortgage Servicing department. ) During multiple contacts with licensed Navy Federal Mortgage personnel, I was given conflicting information. XXXX XXXX, XXXX XXXX and XXXX XXXX all stated that I must apply for a new mortgage and prove creditworthiness. XXXX XXXX stated to her subordinate, XXXX XXXX, that I must have agreed to have my name taken off the loan. ( XXXX also failed to advise XXXX XXXX ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) that I was deleted from the loan application at the insistence of XXXX XXXX, the Mortgage Officer. XXXX XXXX stated to me that XXXX merely told her that I was not on the loan application and therefore must apply for a new loan. XXXX XXXX, when advised that VA Mortgage personnel insisted Navy Federal process an Unrestricted Transfer so that I could assume the mortgage, replied 'the VA doesn't tell Navy Federal how to service their loans. ' On XX/XX/XXXX I spoke with Lead Loan Specialist XXXX XXXX ( XXXX XXXX XXXX XXXX XXXX XXXX ). XXXX XXXX  was very angry at the situation and stated that the Region had been receiving so many complaints that Navy Federal had done this to other people that the credit union was in danger of having their ability to process or service VA loans frozen. She provided me with a copy of the applicable regulations in Chapter 5,  Section 7 O and Item 8. Unrestricted Transfer from Transfer of Ownership Circular XXXX.

On XX/XX/XXXX I called Navy Federal for assistance with making a payment on the mortgage. 'XXXX  ' the licensed mortgage staffer, stated that his coworker had tried to help another veteran 's widow earlier that night who had the same problem.

The curious thing is that every Navy Federal Mortgage department employee ( licensed ) has agreed that the loan assumption should have been processed and all have 'escalated ' the situation or 'reached out ' to a supervisor. The problem is that all these attempts are being routed to XXXX XXXX, XXXX XXXX or XXXX XXXX and all of these individuals refuse to follow VA instructions to remedy the problem that Navy Federal created and apparently continues to create.

This is an unacceptable situation because the loan applications are initially completed correctly-with both spouses ' information-and we rely on Navy Federal personnel for accuracy in processing and servicing. It is an especially harrowing experience for newly widowed spouses to face such stubborn systematic incompetence about something as important as a mortgage. Thank you for any assistance.

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