Consumer complaint received 2020-06-13
Company: NAVY FEDERAL CREDIT UNION
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
XX/XX/XXXX I applied for a mortgage loan with Navy Federal Credit Union. After I applied I received a message that said I would get a response in 24-48hrs, however when I logged into my Navy Federal bank account I noticed that I had already been provided a loan number and an approved loan amount of {$460000.00}. I called the bank to request a letter so that I may go looking for a home and I was told someone would follow up with me. I also asked for the interest rate, type of loan and how much my payments would be. 
I was told my loan amount was {$450000.00}, my interest rate would be XXXX, and it would be a conventional loan. I asked if this included my HOA. I was told no and my monthly payments would be {$2600.00}. On XX/XX/XXXX, I received a call from XXXX who mentioned she was sending the e-mail right away with the pre approval. I asked which e-mail address she sent it to and she gave XXXX. I explained that was not my e-mail address and I provided her the correct one. I stayed on the line while she tried to send it but I never received it. XXXX stated that her system froze and she would call me back later. I never received a return call from her. I sent 3 e-mails to my loan rep XXXX. She only replied to one of them, stating they were working on my application and she would get back to me. She never did. This morning XX/XX/XXXX, I received an e-mail requesting for me to log in and sign my mortgage documents. I was overly excited and began to mentally plan my day with the realtor. I opened the e-mail to sign the docs only to find a credit denial letter. The letter was requesting for me to print and sign a credit denial letter. The reasons for my mortgage loan getting denied was due to delinquent past, or present credit obligations with others & collection action or judgment. This is false. I filed bankruptcy in XXXX and I have never been late with any creditor since then. I also monitor my credit daily and I know exactly whats on my credit report. Navy Federal provided my credit score of XXXX. This score is in range to obtain a mortgage. I have done the research myself and I know that you can purchase a home with a minimum fico score of XXXX. 
Navy Federal Credit Union led me to believe that I was already pre-approved for the loan and all I would need was the letter and to sign the documents. I was devastated this morning when I woke up to an e-mail that was sent at XXXX requesting for me to click and sign my loan docs only to open them up and read a credit denial statement. It seems that navy federal goes out of their way to emotionally upset their consumers and several different ways. I called my family members and told them I was purchasing a home and I even shared the news with my children. Ive involved a realtor and now I have to tell everyone that it wasnt real. XXXX XXXX needs a better policy in place when approving or denying a mortgage application. For an entire week from Monday-Saturday I was planning to move into a new house, purchase new furniture, and imagine myself and my children in our new home. All of that came crashing down when I opened my e-mail this morning. I am not sure why Navy Federal approved my loan one day and then another day denied it. I do not have any outstanding delinquencies, they were all covered in my bankruptcy in XXXX, since then I have paid everything on or before the due date. I do not have any collections or outstanding judgments. Navy federal denied my loan for personal reasons and the only reason I can think of is racial discrimination. My name is very ethnic. Anyone that sees my name on any document can guess right away that I am XXXX American. Navy federal discriminated against me and then flat out lied about it. First they approve me then deny me. This is obsurd and I hope Navy Federal isnt doing this to other consumers. Navy federal has upset and devastated me and my family beyond belief. Owning a home is the ultimate American Dream and I thought I had accomplished this for myself and my children, but today I will have to explain to them and my family along with the realtor that we will not be getting a home and they will have to continue to share a room until we are able to find a lender that treats XXXX Americans fairly.

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