Consumer complaint received 2021-07-30
Company: NAVY FEDERAL CREDIT UNION
State: GA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
I took a forbearance with Navy Federal Credit Union Mortgage ( Navy Federal ) for about six months when I was offered the option during COVID. At the time, I completed all the necessary paperwork for the forbearance and was given instructions that I could not sell nor refinance my home without it being paid in full. It was my understanding that I would not be penalized for the forbearance and that it would be tacked on to the end of the loan. 
I was also told numerous times by a Navy Federal representative that I would not be penalized for the forbearance because my account had been in good standing and was always paid on time. Three months after the forbearance, I noticed when going to my account on-line that the total amount due included three months of the forbearance amount. The Navy Federal website indicated that I owed XXXX  XXXX  dollars and it was reported as such to the credit reporting agencies. When I contacted Navy Federal about this issue, it was corrected. I was told that it was a glitch in the system.

I resumed my normal payment about four months ago and began paying on time with no problems. Suddenly, I went to make the XX/XX/2021 payment and the Navy Federal website had me owing XXXX XXXX dollars. The website stated that the total amount of the forbearance was due when I opted to have it applied to the end of the loan. In addition, my credit score went down by 30 points due to what had been reported by Navy Federal to XXXX. The reporting agency stated it was Navy Federal mortgage that had it reported it. It appeared when looking at the credit agency report that I had taken out some type of additional loan for the forbearance amount like refinancing.

It was untrue from Navy Federal that I would not be penalized for the forbearance. I was punished for taking the forbearance with my credit score being lowered. In addition, when I contacted Navy Federal on XX/XX/2021 about this issue, I was told that I signed a partial claim. Please note that I was passed from person to person and on the telephone and spent more than an hour trying to resolve my concern. It should also be noted that I had no understanding of what a partial claim meant and believed that I needed to be signed the document to have the forbearance amount added to the end of the loan. The forbearance process by Navy Federal was misleading and I certainly had no idea that my credit score would be impacted by lowering it 30 points. Finally, I spoke with Mr. XXXX XXXX of Navy Federal, and he explained what transpired. Yes, COVID had an impact on everything including me and I was very disappointed in how Navy Federal reported my mortgage to the credit bureaus. Navy Federal blamed it on XXXX, but the credit bureau stated they reported it. Navy Federal misrepresented to me what would transpire with the forbearance at the onset. If I had known that I would have been impacted with a lower credit score of 30 points, then I would have tried to get an extra job during COVID to pay the mortgage. So, I feel misled by Navy Federal.

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