Consumer complaint received 2023-05-11
Company: NAVY FEDERAL CREDIT UNION
State: FL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
XXXX  first application was for a VA loan 5 % XXXX my house in XXXX Ohio in VA loan with XXXX fell out of contract ( buyer had financing problems and cancelled ). 
so XX/XX/XXXX second application did joint Conventional to include daughters income so XXXX stay low with XXXX loan. Underwriters rejected saying dormer income. 
on XX/XX/XXXX talked with XXXX XXXX ( assigned Mortgage officer ) who went over rates and the lowest was on website 4.375 % with 10 % down on XXXX arm so I did 3rd application and went over all numbers with XXXX XXXX with XXXX ( 10 % ) down and we were waiting for appraisal. on Monday ( appraisal financing contingency expired, so seller granted me extension till XX/XX/XXXX on financing ). application resubmitted and denied " adverse information. XXXX XXXX would not followup and had the first application resubmitted as the amount was XXXX and 6 %! that is not the rate she told me and what was online. 
So I called her supervisor XXXX XXXX who would not return my calls. 
on Tuesday morning emailed XXXX XXXX XXXX the numbers incorrect and this is Lending discrimination. We were approved with the same income XX/XX/XXXX to purchase a house XXXX XXXX and all rents were used ( 75 % of XXXX ) and we had to submit tax returns, 3 months bank statements, and all 5 leases ( which were accepted income ). We also were given the correct rate on prior approved loans. NFCU has had lawsuits on underwriting discrimination and know we are victims. All of our savings is in Navy Federal Credit Union and it is over {$300000.00}. After finally talking to XXXX at XXXX on Tuesday ( after 4 emails begging to talk to her ) she says the file marked closed and rejected because of XXXX. the system shows XXXX loan and 5 % down and rate 6.1 %. She saw the rate online which I screenshot and emailed we can put upto 20 % down. We also just got the appraisal in at XXXX so now contract price has to be lowered. So she said there was nothing she could do and stated she could not get into the file. The rate is wrong being inputed by the UW, the amount is wrong, and the product is wrong. So I emailed XXXX XXXX ( ccd Corporate VPs found on XXXX XXXX XXXX and XXXX XXXX XXXX. 

The email listed all of our joint income is {$18000.00} a month, XXXX my Grandson ( if he needs to be added ) and all the expenses on each property. We have over {$300000.00} in NFCU savings, XXXX XXXX, XXXX XXXX XXXX XXXXXXXX ( over XXXX min ), and 2 properties with no mortgage. NET worth about XXXX and this is extreme discrimination for a loan of only XXXX when we have that much in savings! our XXXX is XXXX and the cap on XXXX XXXX XXXX XXXX XXXXs XXXX. My daughter XXXX XXXX used to work for XXXX 28 years, she did the calculations and said NFCU is violating " The Fair Housing Act ( FHA ) 1. The Equal Credit Opportunity Act ( ECOA ) 2. The Community Reinvestment Act ( CRA ) 3. '' she told me that if they dont give us the loan to take all our moeny out and close accounts because this is Overt Discrimination, Disparate Treatment and Disparate Impact. 

Tuesday evening after cc Corporate VPs XXXX XXXX and XXXX XXXX, a liaison called XXXX XXXX. She pulled up denied application and stayed on the phone 90 minutes going over calculations and it did not make sense. the wrong rate was put in and the downpayment still showed 5 %. New information about the gap in rental income XXXX I had to email her Building plans and the 1 time Capital improvement, those costs were deducted from rental income. So the UW did not know that and I emailed XXXX as the file was closed not allowing us to upload new information. 
They were suppose to send us Conditional approval stating loan could be done if more down, or if pledge loan paid off or any information what to do to continue. They just closed the file and rejected us and they never did that before. it was an unwarranted and violation to us. my Grandfather was a member, my mother was a member, my daughter and grandchildren member so we dont understand the grounds of denial. 
I get 2 pensions directly from the government every month XXXX and my daughter SSD XXXX, I even offered the auto payment directly out of XXXX account is XXXX! We get XXXX every month regardless to rents so there is no risk! Wednesday afternoon me & XXXX went over all the numbers : XXXX pensions XXXX SSD XXXX ( suprvr UW approve 75 % of leases rent income XXXX XXXX ) XXXX income XXXX XXXX XXXX XXXX insurance taxes hoa XXXX XXXX XXXX XXXX ins hoa * NO MORTGAGE XXXXXXXX XXXX XXXX tax + ins * NO MORTGAGE SALE PRICE IS NOW XXXX 10 % XXXX LEAVES {$320000.00} YESTERDAYS RATE 4.625 % no discount points XXXX could not get UW to approve, they keep putting 6.1 % a higher rate ( which is usually done to applicants with bad credit ) **THIS IS ONE OF THE PROBLEMS THE UW PLUGGING IN WRONG NUMBERS ON PURPOSE SO WE GET HIGHER PAYMENT AND DTI WRONG THE PAYMENT SHOULD BE {$1100.00}. 
THEN XXXX XXXX  {$1300.00} ( WHICH WILL BE SOLD IN XXXX AND WE WILL PAYOFF THIS LOAN OR JUST REFI INTO A VA LOAN IN 6 MONTHS THIS WILL BE PAID OFF ) DEBT : XXXX XXXX XXXX XXXX XXXX XXXX XXXX -- -- -- -- XXXX debt to income {$15000.00} x XXXX XXXX {$4400.00} NFCU must re-underwrite the last application since there is new information and this extenuating circumstance is present. Lending discrimination occurs when a credit decision is based on factors other than the applicant 's creditworthiness. THIS FEELS LIKE LENDER DISCRIMINATION. THE AMOUNT WE ARE ASKING FOR IS IN OUR SAVINGS. WE DID NOT WANT TO PAY CASH AND HAVE NO SAVINGS. 

IF HEAD UW APPROVES RATE 10 % DOWN AT 4.625 % THE LOAN SHOULD BE APPROVED TODAY. 

IF NFCU refuses to re work the application, then NFCU will get fines and penalties, litigation, and reputational harm to the lender. I will consult with a lawyer if this decision is not reversed.

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