Consumer complaint received 2020-04-01
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
XXXX XXXX XXXX, XXXX ( XXXX  ) XXXX XXXX XXXX XXXX XXXX XXXX XXXX, Florida XXXX ( m ) XXXX ( e )  XXXX USAA Headquarters XXXX XXXX XXXX XXXX XXXX, Texas XXXX Dear USAA : This document of record is a formal complaint concerning an existing 30-Year Conventional Fixed-Rate Loan # XXXX for the single family home at address XXXX XXXX XXXX XXXX XXXX XXXX ; XXXX, Florida XXXX. Two complaints are described in this document concerning the said loan. The first complaint concerns monthly mortgage payment at the time of closing, which is supported by an escrow account. The second complaint concerns recent customer service received during the refinancing of the said loan. 
First complaint : Dates back to loan origination date XX/XX/XXXX. At closing, mortgage documents signed by both parties listed the monthly mortgage loan amount at {$2100.00} per month. In XX/XX/XXXX, the monthly mortgage loan amount increased to {$3000.00} per month. Details were not disclosed at closing that a drastic increase of this nature could and would occur. How could this occur with a fixed-rate? I thought the consumer was protected from such drastic increases with a fixed-rate loan. I never signed-up for a {$3000.00} per monthly mortgage statement. How could USAA allow me to enter into a loan agreement that would jump ~ {$800.00} in one month without prior disclosure? The monthly  mortgage loan increase occurred in XX/XX/XXXX, ~ 17 months following loan origination. From XX/XX/XXXX XX/XX/XXXX, a monthly mortgage of {$2100.00} was paid in good faith. 
XXXX XXXX was contacted for explanation in XX/XX/XXXX, for what I assumed was a one-time mortgage error that would self-correct in XX/XX/XXXX. To my disbelief, XXXX informed me that my XXXX mortgage payments would indeed be {$3000.00} per month. Explanation provided by XXXX was that the escrow property tax calculations were under-estimated in previous year ( s ). I contacted the XXXX County Tax Collector office it was revealed that the owner address on file was still the builders address, that it was listed as a VA loan, and that initial property tax appraisal was assessed on the property lot not the completed build. I validated this explanation with XXXX as well. It was also stated that due to the new appraisal, which included the value of the property proper, the escrow was in the rears for property taxes to include the estimated property tax for XXXX. If you unpack this, the escrow account was malnourished for months due to no fault of my own and the original monthly loan amount at closing was also under-estimated due to a sloppy appraisal. It appears that an under-estimated appraisal occurred to make the property a more attractive sale. Various phone discussions with XXXX XXXX  Associates strongly supports this assumption, which is an unscrupulous business practice. I am suspended in disbelief that an estimated appraisal valuation was not conducted to support the escrow account. At the time of closing, the neighborhood was ripe with property comparables that could have provided a tax estimation to support a factual monthly mortgage payment and escrow requirement. There were similar design builds adjacent to my property, that were already well-occupied, that offered such opportunity. In addition, the house was move-in ready well before closing to support a holistic appraisal to derive an estimated appraisal valuation to support the escrow account. Should disclosure not be offered at closing, that the monthly mortgage at signing is far below the actual mortgage in next years, due to a huge property tax under-estimation? Needless to say, I am quite frustrated and disappointed as I expected a much higher level of service from USAA and better consumer protection as a 20+ year loyal USAA member. 
Second complaint : Dates back to XX/XX/XXXX, which stamps the period I commenced to refinance the now {$3000.00} per month mortgage loan due to the drastic change increase after paying {$2100.00} the previous ~ 17 months. I was recently denied USAA Mortgage Loan refinancing because my debt-to-income ratio was said to be too high. What was not taken into account was that in XX/XX/XXXX, 3-months before my 20-year XXXX  service retirement I suffered major property damages to my home insured by USAA. Deeper assessment of my existing file or portfolio would reveal my debt-to-income ratio shot up post-Hurricane Irma as the cost of repairs was not fully covered by my USAA flood policy. There was many out-of-pocket expenses incurred as a result of the huge delta between flood policy insurance pay-out and actual rehab costs to restore the property to pre-conditions. The delta accelerated my debt-to-income ratio and I am now on the tail-end of recovery supported by my retirement annuity and post-XXXX career. 
As stated, the refinance time-line with USAA began in early-XXXX  and concluded with a denial in late-XXXX   XXXX ; almost 2-months of refinance processing only to return a refinance denial. The only reason I am refinancing the home to begin with is because of the issues described in the First Complaint. The denial is of course dis-pleasurable and to add to this fact was the poor service I received during the refinance period. The Mortgage Specialist assigned to the refinance was not timely in responses, and repeatedly asked for duplicative documentation already provided. When I addressed the issue with the Mortgage Specialists Supervisor the issue was heard but not corrected. I would not hear from the Mortgage Specialist via email or phone for week ( s ) at a time, even after sending multiple requests for status updates via phone and email due to long pauses in correspondence. When I did hear from the Mortgage Specialist, the subject of the correspondence was additional requests for information. Ive made numerous professional complaints about the quality of service during the refinance period that are well documented by USAA. Ive been with USAA for over 20+ years and I can attest this is my most sub-par customer service experience with USAA . I believe there was a 1-month gap between phone conversations with my Mortgage Specialist ( which I find very impersonal ). The last phone conversation initiated by the Mortgage Specialist, following a very long pause in both verbal and email communication, was to disclose that USAA denied my refinance. It took ~ 2-months to derive to the decision and I missed many other opportunities with other mortgage lenders and now the declining rates have risen to-date. This is truthfully disheartening to say the least.

Summary & Request : I have been a loyal customer with USAA for over 20+ years. I entered into mortgage loan agreement in good faith with a disclosure that the monthly mortgage would be ~ {$2100.00}, discounting gradual increases in property taxes and insurance. The jump to {$3000.00} per month or any drastic amount was not disclosed at the time of signing nor during the duration of the escrow monthly escrow payments. The increase in monthly mortgage and denial of refinance makes me unattractive to other mortgage lenders and I feel black-balled from refinancing opportunities. USAA has access to documentation that depicts the surge in my debt-to-income ratio resulting from Hurricane Irma. USAA also has access to documentation that depicts my responsible credit history, which was required to maintain XXXX XXXX ( XXXX  ) / XXXX XXXX XXXX ( XXXX  ) XXXX  XXXX  while on XXXX   XXXX and is required now for my current XXXX XXXX XXXX position. The established 20+ year  good faith relationship should have warranted a more in-depth assessment of my refinance application. Documents provided illustrated I have consistent streams of monthly income post-XXXX   service that supports refinance approval. The logic that my debt-to-income ratio is too high to refinance my mortgage from the current amount {$3000.00} to {$2100.00} per month at the USAA offered interest rate of 3.75 % remains puzzling, especially since the No-Cash out refinance requested will reduce the risk of default. I am requesting the following action from USAA : USAA re-offer the initial locked in refinance rate of 3.75 % and approve the refinance USAA provide a formal acknowledgement that there were fundamental missteps at closing that resulted in a misrepresentation of the actual monthly mortgage USAA address my concerns broadly and enacts stronger consumer protections to preclude further incidents of this nature at closing It is my solemn truth that I would not have entered a mortgage agreement, six months post-retirement, if I was provided prior knowledge that my mortgage at closing would deviate drastically from {$2100.00} per month, excluding gradual increases in property taxes and insurance. What I and my family have experienced over the last 4+ months as a result of 30-Year Conventional Loan # XXXX is beyond disappointing and were are in a continuum of disbelief. My wife consistently reiterates my comments from XXXX that our mortgage loan must be with USAA ; she and I are both regretting the decision. I urge USAA to make good on its slogan At USAA, serving the military community is our mission. 

Sincerely, XXXX XXXX XXXX XXXX ( XXXX ), XXXX XXXX

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