Consumer complaint received 2019-07-16
Company: NAVY FEDERAL CREDIT UNION
State: DE
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
In mid XX/XX/2019 I was approved for a HELOC with Navy Federal Credit Union, who also have my home mortgage. 
At this point I had spoken to no lass than 4 different loan reps, and had consistently gotten varied information from all of them regarding the APR and various loan details relating to HELOC equity mortgages. By the time I was ready to close on this loan, the interest rate had gone up from what I had seen during my initial investigation of NFCU 's various equity type of loans.

The first and only % rate that was referred to on their intro equity loan/line section was 5.75, possibly even lower. By the time the process was complete they reported that my rate was going to be 9.25 %, down to 9 % if I signed on for automatic payments from my NFCU checking/shares accounts, which I agreed to reluctantly, since I was almost ready to cancel the application - based on confusing, poorly explained incremental rate increases throughout the process, the first of which I recall was around 7.5 %, and the explanation for why it was higher at that point, was so inadequately explained that I actually can not recall what it was. Then higher, at some point, finally ending up at 9.25 %. 
The justification for this higher rate ( 3.75 % higher that the rate I had initially seen ), had to do with the LTV that they came up with. When I asked for the comps the LTV for my home were based on, this final loan officer or agent said " it's just a standard procedure done by companies that specialize in doing this ". I asked for the company 's name, where they were located, and how could I be sure it was accurate, she simply continued to use the " it's no big deal - just a standard procedure '' attitude, thus brushing it off and never providing me with any details, or even the company identity I requested.

How can I be sure that this company and NFCU don't have a conflict of interest of some kind, like possibly their CFO or a key board member having a interest in this company, thus providing additional income for NFCU based on arbitrarily derived LTV numbers, so as to be able to raise interest rates for their VETERAN members. 

I am a 100 % service connected XXXX  XXXX XXXX XXXX combat Veteran, and a 30 XXXX XXXX  XXXX. My career began the year after I received my 4 year degree from XXXX, and it ended when my XXXX symptoms and medical issues related to my service in the XXXX   began to worsen greatly, to the point that I was no longer able to work. 
Do they have any clue about my military service and the sacrifices I've made for my country.and even if they did, do I believe that they really care at all? Not likely, I have seen several indications over the years that cause me to believe that, aside from their limiting their services to Military members and Veterans and their immediate families, they are exactly the same as any other profit motivated banking/financial organizations. Therefore, how can I believe that they do anything different in their policies or the services they provide, to benefit the Veteran community in any significant way. 
Don't get me wrong, I do value their banking system, which is fairly efficient with some policies, like overdraft protection and a few others being oriented toward higher customer satisfaction. The little details like their reps always thanking us for our service consistently might seem like a minor thing, but to Vets like me who've seen the worst in war, and were rejected upon our return, it does mean quite a lot. 
But when it comes to financial products that they offer, their motive is exactly the same as all the rest - profit, as much as they possibly can. 
There are crooks and scams everywhere you look, so why should I believe they have no shady dealings going on, just because they only work with Veterans, and are a credit union. 

What I demand to know is who the company is that gave them the highly questionable LTV rating for my home, and how did they get to be a go-to company for this service with NFCU.

My neighbor and I looked into all the home sales over the past 2 years in our development and a few nearby as well, and 85 % of them were in the low to upper XXXX XXXXs. 
In my case this company came up with 3 in the 300s, and one at around 245, just low enough to allow them to use some hidden rule that allows them to raise your rate. 

I want this company to be investigated to see just who owns it, who it's board members and management are, and do they have some hard to detect connection to this credit union in any way at all. 

My only alternative would have been to hold up the processing of my loan, while I found a local appraiser to do a full appraisal - @ XXXX XXXX.+.which I wasn't willing to do, since I had plans already made for some of my equity, which were time sensitive, so they had me in a corner, and I was forced to make the decision that I did. Without being assured or satisfied with how they came up with their highly suspect LTV number.+

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