Consumer complaint received 2020-07-28
Company: PENTAGON FEDERAL CREDIT UNION
State: FL
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
XXXX XXXX PenFed Member # XXXX HELOC ACCOUNT # XXXX I carried a Pentagon Federal Credit Union Home Equity Line of Credit account ( XXXX ) for years. A recent change in their policy required that I obtain a flood insurance on the property ( XXXX XXXX XXXX XXXX XXXX, FL XXXX ) for the loan to remain viable. 
I repeatedly called and emailed PenFed explaining that I could not pay the entire amount of {$6200.00} for the insurance upfront and requested PenFed obtain the required coverage and add that to my HELOC. This was agreed to verbally on the telephone by a PenFed loan officer in their mortgage department. 
I was promised that paperwork would follow that conversation, one we had back in XXXX/XXXX  time frame, long before the said HELOC was due to expire in XXXX. Unfortunately, PenFed failed to follow up on the promise, this despite my numerous calls and emails reminding them of it. 
When I finally was able to connect to another loan officer, I  was told that it was too late to apply for a refinancing of the loan as the timeframe required to process the loan would go beyond the expiration date of the existing loan. 
Meanwhile, I set up a {$500.00} a month allotment to go toward paying off the residual amount on the HELOC, around {$8500.00}. Instead of applying that monthly amount toward the loan, PenFed instead began to charge me a {$470.00} a month penalty for not having paid off the balloon. 
Keeping in mind that I did all I could to satisfy PenFed at every turn and was met with deaf ears, I had a hard time understand why PenFed put a black mark on my credit standing. My XXXX credit rating tumbled to XXXX as a result. All due to no fault of my own as I trusted PenFed to refinance the loan and to obtain the required flood policy. 
In that I was not in a position to pay upfront for the flood insurance, and incremental payments are not allowed as they are for other types of insurance policies, I discovered that I could charge the fee to my credit card. The new flood policy declaration was immediately faxed by XXXX to PenFed. The mortgage loan processor, XXXX XXXX, ( O : XXXX Ext : XXXX Fax : XXXX ) XXXX XXXX XXXX, XXXX XXXX XXXX, received it the following day. 
After talking with the officer manager for the HELOC, I was amazed to discover that he had no influence on the other branch of PenFed handling delinquent accounts. I explained to him that the account became delinquent not due to a fault of my own but PenFed 's. He understood my plight but could not influence the other department to stop sending me late payment reminders, correct my credit standing and stop the onerous late payment fee. 
My hope is that the refinancing, something that has taken months to obtain, will finally allow me to pay off my credit card. I fully intend to pay off the HELOC balance as quickly as I am able to do so. 
This is no way to treat a member who has been in good standing with PenFed since XXXX. 
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- - My previous attempts to make things right : Member Number : XXXX HELOC ACCOUNT # XXXX I again plead with Pentagon Federal Credit Union to please help resolve the inordinate delay in refinancing my HELOC. 
Due to no fault of my own, the refinancing didn't occur in due time, despite my repeated and early pleas to PenFed to refinance the loan in earnest and add the cost of the new requirement for flood insurance to the newly refinanced HELOC. Please check my record to note the number of phone calls and email to that effect. 
Instead of responding to my emails and phone calls, I instead received nothing but grief from PenFed : several notices of the need for flood insurance and late payment. A hefty fine was added to my loan and a black mark imposed on my credit worthiness. 
I expected better from PenFed as I did all I could to satisfy its new requirements and repeated reminders. I have a {$500.00} a month allotment toward satisfying the remaining amout due on the existing HELOC. In that I can not afford to pay upfront the {$6100.00} cost of flood insurance, I requested that the same cost be added to my HELOC ( something I thought had been resolved after my conversation with PenFed 's mortgage department ). 
So, please help expeite the completion of my HELOC refinancing application, currently in the hands of XXXX XXXX, you Mortgage Loan Processor, MLO # XXXX ( O : XXXX Ext : XXXX Fax : XXXX ) XXXX XXXX XXXX, XXXX XXXX XXXX. 
Additionally, obtain flood insurance for the property and add that amount to the newly refinanced HELOC. I also request that PenFed help restore my credit standing and remove the {$470.00} penalties, fees imposed by PenFed due to its own dragging indefinitely on this case instead of stepping to the plate and getting it done in due time. 
Thanking you in advance for your help, XXXX XXXX XXXX, XXXX ( XXXX ) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- - I received a PenFed email ( XX/XX/XXXX ) asking that I call a representative at first opportunity. 
I called immediately and eventually got to talk to a loan officer, XXXX XXXX. He obviously was not familiar with my issue and volunteered to dig into it before calling me back. When he called back, I was taken back by his insistance I payoff the remaining HELOC loan in full as the loan had expired. There was no time left to close on another loan before this one is overdue~!? 
Would you please review the record and note that I've called and emailed on several occasions over the last few weeks asking that a HELOC loan be reissued. Despite promises to do so by several PenFed representatives, I never received any paperwork to initiate the procedure. 
As a result, I wrongly assumed that my original loan had simply gotten extended. Also, after receiving several FINAL NOTICES, reminding me of a need for a flood insurance on the property, something that wasn't needed originally when I obtained the PenFed HELOC. For the record, the property was permitted in XXXX, before FEMA and FIRM requirements. Regardless, I verbally and via email instructed PenFed to tack onto my HELOC the cost of the flood insurance, as I couldn't afford to defray the entire cost outright ( $ XXXX ). 
Instead of following my instructions, I continued getting FINAL NOTICES, as though nothing had been resolved. 
I understand that we are going through a difficult period and that PenFed is flooded with requests for action. However, my issued was not dealt with for a long, long time. 
I've set up an automatic {$500.00} a month payment toward paying off the PenFed HELOC balance and even that got botched up as the date due didn't correspond with the date of the monthly payment. 
I stand ready to satisfy any reasonable demand on the part of PenFed. However, I am not in a position to pay off the remaining $ XXXX at once. 
Any helpful resolution of this impasse would be greatly appreciated. 
XXXX XXXX XXXX, XXXX ( XXXX )

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation