Consumer complaint received 2021-09-16
Company: NAVY FEDERAL CREDIT UNION
State: AL
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On XX/XX/XXXX, I completed an online application with Navy Federal Credit Union for a cash-out refinancing of the current VA mortgage I have with Navy Federal . 
( Please refer to previous CFPB complaints regarding the same and other issues with NFCU 's mortgage process. # XXXX-XXXX  and # XXXX-XXXX  ) On XXXX I uploaded required documents through the NFCU secure message website and included a text message that the Deed of the new mortgage needed to be the same as the current one which shows my son as a Joint Tenant with Right of Survivorship. 
XXXX I uploaded more documents and a reminder about the correct titling. 
XXXX I sent my loan processor, XXXX XXXX, an email with documents and a short list of corrections needed on the NFCU paperwork and a request for clarification. 
( Ms. XXXX had advised that she was leaving NFCU in one week. As of XXXX, there have been none of the requested corrections to the Uniform Residential Loan document or the VA Addendum. ) XXXX I received an email from XXXX XXXX advising that she was my NFCU loan officer. 
XXXX I sent Ms. XXXX an email advising the URL and VA Addendum had not been corrected in two weeks and also noting the current mortgage title type. 
XXXX Telephone conference with Ms. XXXX and her supervisor during which the supervisor, XXXX, stated that my son was not allowed to be on the title because he was not my spouse and because he was not an occupant. 
I sent an email to XXXX XXXX, the NFCU Mortgage VP who helped correct the initial NFCU mortgage/loan assumption process errors in XXXX and XXXX. Although Mr. XXXX is now in the NFCU Risk Management department, he responded that he had spoken with Ms. XXXX 's manager, XXXX XXXX, and she would be in contact with me shortly. There has been no contact by Ms. XXXX. 
XXXX I received a Conditional Approval letter from NFCU. I also sent Ms. XXXX an email requesting clarification and corrections. 
I also received an email from XXXX XXXX advising that he was the loan processor. 
XXXX I received an email from XXXX XXXX ( Navy Federal Title ) which stated that my husband ( deceased in XX/XX/XXXX ) is the current title holder. She requested a copy of his death certificate. She also noted that Navy Federal only allows spouses to be on VA mortgage titles. 
I responded to Ms. XXXX ( CC : XXXX XXXX, XXXX XXXX, XXXX XXXX and XXXX XXXX XXXX, VA Loan Specialist in XXXX XXXX who was also instrumental in providing NFCU with the regulations in XXXX ) by email and provided her with copies of the certified ( XXXX ) Warranty Bill of Sale with Mortgage Assumption and the Agreement Creating Liability to Holder and to the United States , both of which showed that the current NFCU VA mortgage title was held with my son as a Joint Tenant with Survivorship. I also asked whether Ms. XXXX or Mr. XXXX was handling the loan. 
Mr. XXXX responded by email a few hours later ( CC : all plus XXXX XXXX, NFCU mortgage processor ). 
Mr. XXXX provided the following verbatim response : 1. There is no loan from XXXX, it appears NFCU took your late husbands name off the loan as you were a co borrower or on title and able to do so. The current loan and title is still from XXXX. 
2. Your name with the VA is XXXX. You will need to have the VA update your name prior to the COE being issued.

3. The VA still shows the loan under your later husbands name. This will need to be corrected prior to proceeding with a VA cash out loan.

4. The Current NFCU policy is the loan may not close with a Non-Veteran, Non-Spouse on the title. 
As the loan can not be processed at this point it will be submitted for decision. 
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1. I assumed the loan in XXXX because NFCU incorrectly removed me from it in XXXX because I was told I was not a veteran. ( Refer to the two previous CFPB complaints listed above for specifics. ) At that time my son was added to the title. 
2. The COE being used is that of my deceased spouse. I notified NFCU of this in emails on XX/XX/XXXX and XXXX and through a secured message on the NFCU website on XXXX XXXX. I also provided copies of my husband 's DD214 for the COE.

3. If the VA has information that reflects my deceased ( I have been married once ) spouse 's name, NFCU failed to provide the updated, certified information from XXXX. 
4. I have not been provided with written documentation of the NFCU policy that a non-veteran, non-spouse can not be on a title. If true, this policy was enacted after XX/XX/XXXX and supersedes federal/VA regulations listed in Circular XXXX, Unrestricted Transfers. 
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I would greatly appreciate any assistance, once again, to motivate Navy Federal with processing this mortgage accurately and a bit less painfully. 
Thank you.

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