Consumer complaint received 2016-01-22
Company: NAVY FEDERAL CREDIT UNION
State: MD
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Application, originator, mortgage broker

Complaint:
I submitted application for an equity line of credit to Navy Federal Credit Union XX/XX/2015. I requested {$120000.00} to renovate my home. After submitting all documents I was told that I would settle by XXXX. The appraiser came out and asked did the lender know the amount of work you needed done? I said yes, that is why I asked for {$120000.00}. I started demonishing it myself but it was to much for me. The Appraiser said he would not be able to do it then and needed to talk to the lender. A week later the appraiser arranged to come back out. He was told to proceed with the appraisal. The XXXX asked for a contractors bid to do the work and I gave him the first written estimate that I received. I received estimates from at least XXXX different contractors but they were initially verbal. The estimates ranged was {$80000.00} to {$190000.00}. The lender called and needed to verify my insurance as XXXX XXXX so I bridged Navy Federal Credit Union with XXXX XXXX at which time they verified my insurance. 
Navy Federal asked them to place Navy Federal Credit on my policy and they requested the declaration page showing them on my policy be sent to them. I asked does this mean I have the loan and I was told, '' yes ''. I received voice messages on my phone days later from my loan officer asking me to call him. I was in school and after seeing four calls from him was able to manage a few minutes to return the call. I was told the money would be AVAILABLE after the work was done. 
I went to a local branch of Navy Federal Credit Union and spoke to the mortgage contact their who made a call to the equity group. I took the copy of the appraisal with me and initially the local contact saw what I did. The appraisal with value on the front page and then confirmed again on the second page. I sat in front of her as she talked to the person on the other end of the phone line. She was flipping through the appraisal and said " Oh, I see it now '', She then told me the appraiser wrote it up for me to get the money after the work was done and the value was only {$100000.00}. I stepped out of her officeand called the appraiser on the phone. He answer and I explained who I was and that Navy Federal said I would get the money to renovate after the work was complete. The appraiser explained that Navy Federal told him to write ithe appraisal up that way. This was being stated as I sat back down in the Navy Federal 's person 's ( Ap 's ofc. She shouted out we did not and would not tell you how to write the appraisal. The appraiser asked who are you and she told him. His reply was that she should not be talking to him. 
She walked out and came back to her ofc where she left me about XXXX min 's later with the approval letter in the amount for {$120000.00}. I contacted the manager of my intake worker who said he would see if anything could be done for money now and he would get back to me. He contacted me and asked if I had disclose initially the amount of work needed? I replied again, yes and why else would I need {$120000.00}. The manager then said he would have to check with his manager and nothing further was done. I got a call a week after that and it was the initial contact person with Navy Federal asking me to provide my XXXX. I said that I provided my taxes and it was a discussion for the next level which he was also aware.

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