Consumer complaint received 2020-02-18
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: SC
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
XXXX and XXXX XXXX XXXX XXXX, XXXX CONSUMER FINANCIAL PROTECTION BUREAU CLAIM This complaint is against USAA Fereral Savings Bank, XXXX XXXX XXXX XXXX, Loan file # XXXX. Company ID XXXX. 

Step 1 : The Mortgage Loan Company USAA very seriously mishandled processing of our loan apllication, costing us a significant amount of money.

Step 2 : USAA operated in a laissez-faire environment during the loan processing process resulting in missed contractually committed dates. They mislabled income categories provided to them creating confusion and delay. They created false income categories, directions and requests and attributed these to us.

Step 3 : We had already sold our home and our belongings were in a moving van between RI and SC. We faced a choice of 1 : Face the loss of a home we faithfully negotiated to purchase and very seriously looked forward to owning, temporarily living in a hotel while searching for a temporary home and placing our belongings in long term storage or, 2 : Sell our savings and retirement assets that could quickly be converted to cash to be able to complete the home purchase contract ( knowing there would be conversion cost to bear ). We choose 2 : and the cost is high.

Step 4 : This complaint is against USAA Federal Savings Bank , XXXX XXXX XXXX XXXX, Loan file # XXXX. Company ID XXXX. 
Step 5 : Level 1 People : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Level 2 People : XXXX   XXXX XXXX XXXX Level 3 People : XXXX XXXX ; XXXX was the only person that showed sincere concern, worked professionally, but she just got in to the situation too late. 
Level 4 People : These are people that we had one or two communications with that attempted to help OR NOT, THEY DIDNT XXXX XXXX XXXX XXXX XXXX? 

The Complaint : USAA seriously mismanaged the processing of our Mortgage Loan Application causing us significant loss of money and extreme mental distress.

The XXXX  were forced to quickly raise Cash for the purchas
e of a Contracted Property or Forfiet the Contract ( property ). XXXX had Closed the Sale of their prior home on XX/XX/XXXX and their Home belongings were in-route to this home they were purchasing. 

BACKGROUND : On XX/XX/XXXX and XXXX, XXXX we called several mortgage lenders to request their data for a 30 year, fixed rate home mortgage loan. We asked for both conventional and VA. XXXX XX/XX/XXXX we chose to apply to USAA XXXX We called the loan processor that had provided the data, XXXX XXXX and he confirmed the data. At that time we said that we would assemble our income, expenses and assets in a manor approprate to fill-in the application and would get back. 
XX/XX/XXXX With XXXX help we fill-out the application on-line. We explain that we have a sale closing contract on our present home on XX/XX/XXXX and a purchase closing contract on XX/XX/XXXX. 
XX/XX/XXXX call to XXXX and reached VM, lft msg, send us a copy of the application XX/XX/XXXX we called XXXX  XXXX his back-up guy and rchd his VM, lft msg, cant reach XXXX, we wish a copy of the application. Like XXXX he never got back to us. 
XXXX XXXX sent us an email. This email gave his contact information but said nothing of our request. 
XXXX we call a Supervisor XXXX XXXX to tell her our lack of communications with XXXX. Eventually we receive a copy of the application. While reviewing it I found an item of income XXXX that I didnt recognize. XXXX expained it to me to be the sum of the interest and dividend values which I gave him which he named Annuity. I said it isnt an annuity ; but he said combining some items of income and referring to them as an annuity was standard practice. I thought it odd, but he is the Processor. 
XXXX XXXX informs us the system is showing a Closing date of XX/XX/XXXX, and it is set by the system as the latest expected. The only thing he can do is to move things as quickly as possible and his goal is our XX/XX/XXXX date. Little did we know then that he would be replaced as our processor in a couple of days and that multiple processors and the process itself would be in slow motion by holiday mode nobody gives a darn people. 
My realtor XXXX tells me XX/XX/XXXX could be a problem with the Seller because she has a date to buy property based on the declared XX/XX/XXXX date. 
XX/XX/XXXX from here until XX/XX/XXXX we traveled through five loan processors, two Processor Supervisor and a Manager ( XXXX XXXX ). All would express their concern regarding the lack of attention we were receiving but soon they were gone and they were passing us off to the next person. 
At the time we started the application we stated that we had a closing date of XX/XX/XXXX for a home purchase that we had under contract and this constant turn-over of personnel has to be a negative impact on the closing date, but nobody is saying so. 
On XXXX Loan Supervisor XXXX XXXX called us to introduce herself. It turns out XXXX was the most concerned USAA employee that worked on the Process. 
On XXXX XXXX called to say she was XXXX XXXX, at that time our processor, assistant. She explained XXXX was out unexpectedly and she would be filling-in, then asked me for an explaination of the Annuity. I told her that there was no annuity and I never said I had an annuity, that it was created by XXXX XXXX. I then explained the dollar values were interest & dividends and the back up for them was on the Fed Form 1040s. Until a week!! later I thought the expaination was accepted. 
As the XX/XX/XXXX Closing date approached it was evident that it would not be met and that XX/XX/XXXX was the most likely date. 
The Seller of the home we were to buy reluctently agreed to a no later than XX/XX/XXXX closing. 
XX/XX/XXXX I was told that we had insufficient income to qualify for the loan! I was not told why. My assumption is that XXXX passed on that I stated that I had no annuity and never, ever said I had one but that she didnt ( adequately ) pass on I had the income shown as an annuity in the form of interest & dividends which could be seen on the form 1040s. 
XX/XX/XXXX XXXX got involved and got to the underwriter. We got over this hurdle and XXXX said her goal is still XX/XX/XXXX. 
XX/XX/XXXX We are notified our loan is conditionally approved. 
XX/XX/XXXX Email from XXXX : Unfortunately you can not close on XX/XX/XXXX due to a refusal by you to use electronic XXXX proceedures and a request by you on XX/XX/XXXX to print and ship. The documents were created on XX/XX/XXXX and shipped on XX/XX/XXXX to XXXX, RI per your request The soonest closing would be XX/XX/XXXX. 

First I did not refuse to use XXXX, we had been using it all along in this process. Second I did not make any such request to print and ship ( I dont remember ever hearing/reading the term print and ship ). 
Third we sold the XXXX property over a week earlier. 
If there is such documented requests and directions they have not shown it to us. 

XX/XX/XXXX I told XXXX that we had a closing commitment to meet on XX/XX/XXXX. If USAA cant or wont meet that date I must withdraw our application. She said not before XX/XX/XXXX and I said then Im forced to find a way to meet my purchase commitment without USAA. 

SUMMARY : This loan processing was mismanaged from start to finish ; from uncaring people, personnel turnover, mislabeling of income to undocumented claimed statements and request that USAA attribute to be made by me. 

When we were informed on XXXX, just two days after we had presented our timeline, that the system assigned XX/XX/XXXX as the closing date it was too late for us to attempt to go to one of the other brokers we had consulted. We accepted at that time that XXXX was sincere and commited to make things move quickly in an attempt to get to or closer to XX/XX/XXXX and that he would be with us every day to the close. 

Considering what transpired we can not fathom why XXXX created the factious annuity income label and when asked say it was standard practice. 

Why did it take a week from the time I told XXXX I had  no annuity to being told we lacked sufficient income for the loan? My only thought is that XXXX informed the underwriter that we had no annuity but neglected to explain that the funds labled XXXX were accounted for as interest and dividends and could be found on the 1040s When I told XXXX the same explaination as I told XXXX, XXXX had the loan back on track the next day. 

USAA does not have documentation that we refused to participate to docusign or directed a paper copy be delivered to XXXX RI because they do not exist.. 

We did not want to lose the contract on this house. We went into panick mode. We sold retirement assets so that we could provide funds for a CASH PURCHASE.

I am a Vetern, both of us are in reasonable health for our advanced age ( XXXX & XXXX ) but this six week effort ( plus the on-going time generating this claim ) has been an extreme strain for us as it would be for much younger people. 

This debacle has cost us a great deal of money that we are claiming USAA must compensate us for. 
These Costs are provide as an attachment to this Complaint. 

SUPPORT We have copies of emails and cryptic scribbled handnotes of telephone calls. 

MONETARY COST : XXXX and XXXX XXXX XXXX CONSUMER FINANCIAL PROTECTION BUREAU CLAIM The XXXX  have incurred to-date {$30000.00} of cost over and above what would have occurred had the loan been properly consumated through the USAA application. In addition the XXXX  will pay an additional {$24000.00} in interest for the loan they obtained to replace the botched USAA loan. A total cost of {$54000.00} over the life of the loan. 

An .XXXX  spread sheet will be attached to this submittal

Company response to consumer: Closed with explanation