Consumer complaint received 2021-09-17
Company: NAVY FEDERAL CREDIT UNION
State: MI
Product: Mortgage
Sub-product: VA mortgage
Issue: Closing on a mortgage

Complaint:
XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, MI XXXX XXXX XXXX To : Consumer Financial Protection Bureau Subject : Consumer complaint against Navy Federal Credit Union Mortgage Loan Department Dear Representative, My name is XXXX XXXX and I am the buyer/complainant initiating a formal complaint against Navy Federal Credit Union for the mishandling and loss opportunity to purchase a house through a VA Mortgage due to negligence and incompetence by the loan processing team at Navy Federal Credit Union XXXX 
I started the process for this loan back in XXXX of this year. On XX/XX/XXXX the seller and I consummated a purchase agreement for a property with the address XXXX XXXX XXXX in XXXX, MI XXXX. 

My closing was set for XX/XX/XXXX initially and was delayed until XX/XX/XXXX for consideration of utilizing an energy conservation improvement benefit allowed by the XXXX XXXX Mortgage Department. On XX/XX/XXXX I received the final closing disclosure from Navy Federal Credit Union and my monetary obligation to bring to the closing on XX/XX/XXXX was {$4700.00}, which was approximately {$800.00} higher than my initial closing disclosure estimate that was based on a projected cost for homeowners insurance of {$970.00}. The insurance I purchased cost {$1600.00} and this I assumed was the reason for the increase. I signed the final closing disclosure and emailed confirmation to the mortgage processor, XXXX XXXX XXXX as he had instructed. 

On XX/XX/XXXX after arriving home from work at approximately XXXX XXXX, I prepared to meet my realtor to do a final walk thru of the property at XXXX XXXX. 
Prior to leaving home, I checked my email inbox and saw an email from my lender instructing me to check the site to review a document. I went to the site and opened the document and it was another final closing disclosure that showed my closing fee obligation had increased by approximately {$5000.00}. I called the Mortgage Processor but he wasnt available. I called the loan originator, XXXX XXXX and he wasnt initially aware of the increase so he reached out to his superiors to find out the reason for the increase. He conveyed to me that the increase was caused by taxes that are required to be paid a year in advance in the county of the residence. At that point my question to him was whose responsibility was it to inform me of this information prior to final closing disclosure? He replied that it was my realtors responsibility. So when I met my realtor at the walk thru, I told her the situation. 

The next day, XX/XX/XXXX my realtor contacted me via conference call with her broker on the line and he explained that it was not their responsibility to inform me of the closing cost obligation and that it was the lenders obligation. I was uncertain as to who was telling me accurate information so I contacted the VA mortgage department and asked them for clarity. The representative told me that it was not the realtors responsibility at all but it was indeed the lenders responsibility. 
So, I told my realtor that I didnt have the additional funds to close and she stated that I would need to get a denial letter from my lender or I would be in jeopardy of losing my earnest money deposit of {$4000.00}. I contacted my loan originator at XXXX XXXX and he, after conferring with his superior, began to coerce me into taking out a small loan to secure the additional funds required for closing. I responded by telling him that I was informed in the past that it was illegal to take out a loan to secure another loan and he replied that in this case an exception to the rule would be allowed and at the very least a denial letter would be attained if my debt to income ratio was exceeded by doing so. I told him that I wasnt willing to do that. Then he asked if I could get a gift letter from someone for the additional funds and I responded negatively. He then said that he would put in a withdrawal but not a denial letter and I knew that would most certainly jeopardize my deposit. I never told him that VA had told me that the mistake or negligence was their fault. 

Shortly after that, I received another call from the loan originator and he stated that he had emailed me the denial letter. When I opened the letter it states that I was denied for insufficient funds. I sent that document to my realtor and signed a mutual purchase agreement release. The seller has not signed the release at the time of this letter. The VA Addendum protects me from losing my earnest deposit and the cashiers check I provided is in the possession of my real estate company who hasnt refunded it to me yet. 
I am filing this complaint with your office because I feel that my lender was negligent and deceitful in processing my loan that inevitably caused me to lose the opportunity to purchase a home and jeopardized my earnest money deposit and forfeited my appraisal fee! In addition to that, my realtors integrity was wrongly slandered and her commission was forfeited unjustly. I am requesting that an investigation into this situation be conducted and that a resolution be rendered making my realtor and I whole by requiring Navy Federal to return my earnest money deposit of {$4000.00} and appraisal fee of {$520.00} as well as my realtors commission that was earned if not for the Navy Federals negligence and or incompetence! 

I will upload documents to support my contentions as required. Thank you for your diligence in processing my complaint! 

Regards, XXXX XXXX XXXX

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