Consumer complaint received 2022-02-03
Company: NAVY FEDERAL CREDIT UNION
State: MO
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
In XX/XX/XXXX We applied and was pre-approved for a home loan with Navy Federal Credit Union. We decided to build with XXXX XXXX and also signed a contract to start building in XX/XX/XXXX as well. From that point to near the end of construction we kept in close contact with our loan office XXXX XXXX at Navy Federal. We expected for our home to be completed in XXXX. Unfortunately, is was not completed until XX/XX/XXXX. Throughout this time I ( XXXX XXXX ) have been working full time, had not changed my job at all. Unfortunately I had to take a leave of absence due to some health issues that was causing me difficulty to work and the care of my mom that was on hospice at the time ( she has since passed on in XX/XX/XXXX ). Again everything that the lender needed including bank statements and paystubs. Initially we had a closing date of XX/XX/XXXX. Everything seemed to be OK until our file was sent to underwriting. 
They had issues with the fact that I had a second home in my name. They ( Navy Federal ) was fully aware that I had this property and loan with XXXX Mortgage since the beginning of the loan process. The property is actually being rented out and a copy of the two-year signed lease was provided. With the loan at XXXXXXXX XXXX the loan payment was recorded incorrectly on my credit report. I provided an new mortgage statement, highlighted bank statements that the mortgage was paid out of with the amount that U said it was, a screenshot of my account page as well as an email from the mortgage team backing up everything that I said to them. This was STILL not good enough and they continually asked for this information. They ended up contacting someone from XXXX XXXX to again get this information without both my knowledge and approval. How can someone that is not associated with my account freely ask for information that I did not approve for them to do. Why was the documents already provided not good enough for them to proceed with the loan? 
Another issue that was brought up was the fact that I was on XXXX XXXX XXXX. Even though my paystubs that had my short-term disability pay are on the SAME employer checks that the rest of my full time pay is on they had a problem with that. My pay stayed my normal pay at 100 %, it only changed for the last three weeks of my leave. I was informed that although I was not ready, that in order for this loan to be fully approved and sent to closing that I had to be fully back at work in XXXX. They wanted an exact date that I was going to return to work. They requested extreme things such as speaking to my manager about my condition so they could verify that I am still an employee and that my salary would not change when I came back to work. They requested to speak to someone in HR for this same information. It was not enough that I had ALREADY provided both emails and screenshots/letters for the XXXX  leave of absence website with all this information, I also sent over doctors documents on my leave of absence as well. I was made to return to work before I was ready to not lose the thousands of dollars that my builder already had just to FINALLY close on this loan. 
XX/XX/XXXX we were somehow denied the home loan after all this time. YES! Denied. The reason given was 'Delinquent past or present credit obligations '. For the entire year of XXXX we had none of this on our credit report and in fact things on our credit had only been better since we applied. The 'Delinquent past or present credit obligations ' they spoke about was because of COVID but by the end of the summer of XXXX we were back on track again. After going back and forth this denial was ultimately reversed, but not without causing me extreme XXXX and anxiety that I was initially trying to recover from which is why I was on leave. Too stressed to care and spend time with my XXXX mother because Navy Federal could not stop asking for the same information over three different ways. 
There were even little things like not counting some of my husbands ( XXXX XXXX ) income that they received from XXXX XXXX XXXX ( a trusted source ) requiring even more information about his income even after verification. 
To me something about this did not seem right. Not only invading my privacy and HIPPA laws to verify my pay which by the way under FMLA/Short Term Disability laws my job is required to reinstate me at the same position or equivalent position with the same pay, working conditions and seniority. How does an underwriter not know this? 
And lets not forget all the privacy laws broken with XXXX XXXX handing over my information to Navy Federal without my knowledge or approval.

Thankfully, my husband and I know how to fight to the bitter end, so we did end up closing XX/XX/XXXX. Since our closing was delayed by information, they had already received multiple times we also had to form over money to the builder at closing for the delay of our closing date.

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