Consumer complaint received 2019-10-22
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: AZ
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On XXXX of XX/XX/2019 I submitted all documents related to my medical retirement from active duty service to USAA and formally started the loan process. I asked several times that USAA review the documents to make sure that I met the requirements to use my VA benefit as income. I was given hesitant answers and weak " it should be fine '' for 32 days until the loan finally was reviewed by underwriting. At that point, I was told that my proof of income was insufficient and that I would not be approved for the loan. I contacted the VA and requested assistance. I was pointed towards the VA Lenders Handbook to get clarification on my situation. Per the VA handbook, I have met all the requirements to prove proof of income yet USAA refuses to accept them. 
I had been asking USAA consistently for an answer regarding the strength of my documents for over a month. Because of their lack of due diligence, I am about to be medically retired with 100 % permanent and total service-related XXXX and I will not have a home to go to. If a lender is going to be an approved VA lender they should follow the VA lenders handbook since the VA insures the loans. This would have been a non-issue if USAA had taken a few moments to verify that my documents did not meet their requirements so I could have taken my business to a lender that would have approved me. I no longer have enough time to complete the home buying process, I am out over a XXXX dollars from inspections and fees I can not get refunded because they failed to act as a fiduciary should. I was strung along, paid a lot of money and ultimately denied using the information they had all along. As a XXXX service member, I will say that USAA does not understand how the VA works or the military for that matter. 
Specifics : I have a 100 % VA rating based on a service-connected XXXX. I am retiring in one month and I have a completed MEB/PEB, have a VA award letter, BUPERs Retirement Orders with dates and honorable status, signed accepted MEB/PEB Findings, and a COE. The COE does not contain the amount that I will be receiving because I am still active duty. That amount can not be placed on a COE ( Per chapter four of the VA Lenders Handbook ) until I actually start receiving that benefit. In reference to the VA lender 's handbook, I highlighted the sections that I have proven to be covered by more specifically Chapter 4 pages 4-22,23,30 and 44. USAA has repeatedly stated that my award letter, signed PEB finding and retirement orders are not adequate to prove my benefit amount despite those documents explicitly stating what they are. They continue to state that if the amount is not on the COE it is no good DESPITE the handbook stating that it is- exactly in the situation that I am in. After several calls to the VA, they have no clue as to why USAA would act in this way and have asked them to call them directly which USAA has not done. 

The link for that handbook is : https : XXXX please refer to chapter four, pages 4-22, 4-23, 4-30, 4-44 of the VA Lenders handbook

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