Consumer complaint received 2018-02-26
Company: NAVY FEDERAL CREDIT UNION
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
This complaint is against Navy Federal Credit Union ( NFCU ) mortgage department. NFCU has violated the Fair Lending Act. On XX/XX/, I qualified and locked for a 15 year fixed refinance mortgage loan using the NFCU online loan application process. Starting on XX/XX/XXXX, I tried many times to contact my assigned loan officer. On XX/XX/XXXX, NFCUs loan officer finally contacts me back to inform me that there was a computer glitch in the NFCUs software, and my interest rates are higher because the loan is a cash-out refinance loan. 

NFCU will not honor my locked rate. The locked mortgage loan details that NFCU will not honor : Confirmation # : XXXX Date : XX/XX/ Loan type : Refinance 15 year biweekly ( Primary residence ) XXXX  XXXX XXXX mortgage pay-off : {$250000.00} Loan Amount : {$340000.00} Interest Rage and Points : *Rate 3.625 %, Points 1.625 % Origination Fee : 1.0 % Term : 15 years Rate Status : Locked Rate Locked for : 45 days Extended Lock Points : 0.0 *This is the final interest rate based on my credit history and loan to value Im not responsible for the NFCU software glitch. With the NFCU loan application, I provided the payoff amount for my existing XXXX XXXX XXXX mortgage of {$250000.00}. My locked NFCU loan amount is {$340000.00}. By default, when the new loan amount is more than the balance on the existing mortgage, this is a cash-out. By definition, this is a cash-out for everyone, except in my case. Hence, NFCUs excuse of a computer glitch to bump up my rates is in direct violation of the Fair Lending Act. 

I have simplified the many issues with the lack of customer service, and I have not discussed the major issue with the NFCUs online software automating the mortgage loan application. I provided proof to NFCU that I unsuccessfully attempted to apply for the mortgage loan on XX/XX/. With my proof, NFCU agreed I had sufficient evidence to qualify for the XX/XX/XXXX rates. The rates listed in this complaint is for my locked XX/XX/ locked terms. 

The NFCU software problem is with their software timeout that does not alert the user. NFCU admitted they know about the issue, and the only reliable internet browser is the XXXX XXXX XXXX ( XXXX  ). The recommended XXXX  browser is no where on the application site. I was using an XXXX XXXX with latest operating system and the latest XXXX and XXXX browsers. XXXX is not available for the XXXX. Not providing reliable service to XXXX users is also discrimination since XXXX is not available on the XXXX. 

From XX/XX/XXXX to XX/XX/XXXX, I sent many emails and left many voicemails to my assigned NFCU loan officer without a single return email or phone call. I finally was able to navigate through the NFCU call centers to find a loan manager. Turns out, NFCU had assigned me a loan officer that had already resigned. 

I need NFCU to honor my locked rates, and start the lock date for 45 days on the day NFCU finally agrees to honor my locked rate and loan terms. Due to major issues and the many hours of wasted time on my part, Im also requesting 0 % closing costs. This is time critical because it is now XX/XX/2018, where I now have only less than 30 days left to close, and XXXX is not responsive.

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