Consumer complaint received 2022-03-20
Company: NAVY FEDERAL CREDIT UNION
State: VA
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
After an exhaustive attempt to resolve issues of noncompliance with the VA Loan Guidelines and suspected discrimination ( in reference to federally protected characteristics ).

I have been a customer of NFCU for approximately 20 years. In/around XX/XX/2022 I walked into a local branch to start my very first mortgage application. The representative was nice, friendly, and very informative. After completing the application online, my application sat for two additional business days before I contacted NFCU asking for the application to be reviewed. Finally, after becoming frustrated that the person assigned to assist failed to respond back or essentially do anything, I asked for a new point of contact. After receiving another dud, the customer care line was able to connect me with someone that was able to assist during the pre-approval process. After this traumatic experience finally gained traction, I was emailed by my Loan Officer who was assigned to assist me with the remaining process. After sending a myriad of questions to ensure this person was going to be available, we proceeded with the process. I was not contacted by the Loan Officer until XX/XX/2022. On XX/XX/2022 @ XXXX XXXX, I was contacted by this loan Officer that she " received my loan back from underwritings initial review and due to the county maximum loan limit the maximum loan amount for a VA loan that they would be able to finance is {$780000.00} '' and that I would be required to add " {$44000.00} to the down payment '' originally thought/given on the prelim Loan Estimate. After receiving the message, I asked " to clarify, Page 3 of the CURRENT VA LOAN ( guidelines ) is not applicable? It states " borrowers with full VA loan entitlement are not subjected to VA loan limits in XX/XX/XXXX '' as does a myriad of other places. Am I not showing as not having used a loan before/first time borrower? Or am I misreading the statement? ". I did not hear anything from the loan officer. I reached out to her supervisor ( who was listed on NFCU emails as a POC ). I did not hear anything until I called the mortgage department the following night to learn that my docs were submitted back to underwriting. I asked to be contacted by the branch 's supervisor. Even after submitting this same request in NFCU 's messaging system, my request was ignored, and I finally heard from the loan officer 's supervisor on XX/XX/2022 who informed me that " I was correct, and they informed the underwriter of the updated guidelines and submitted my load for a review ''. She also proceeded to inform me of messages that the Loan Officer sent ( that I NEVER received ) providing updates on what was going on. After going back and forth because it seemed as if we were not going to get any resolution, I asked why didn't anybody contact me, call me or even look up the instruction or use the guidelines before contacting me? I ask how was it possible that a institution of this size were unaware of the guidelines that came out almost two years ago and have been implemented last year, I even asked or laid out that could it have been something in my file that this person saw that chose to have them say that I was essentially not qualified for what I was applying for or at least in the manner to which I was applying for it. The issue should have been caught by the under writer, their supervisor or whomever they have overlooked these things before they go back to the loan officer, the loan officer, and her supervisor because I found out from that same supervisor that she knew of the issue the same day that the loan was essentially given back to the loan officer. I have yet to get an plausible answer as to what exactly happened. I have requested NUMEROUS times for my issues to be forward to my issues to Navy federal where I asked for someone from their executive team contact me. After emailing the CEO directly, I received a call from their resolution specialist team who decided to use BULLYING tactics, THREATENED me that if I did not make a decision as to whether or not I was going to continue with Navy Federal ( within her specified time limit ), then they were going to have my loan pulled, and then lied about the length of time that I had been sitting on this loan application. After putting in a complaint about her, the resolution specialist, I received a call from her supervisor ( allegedly ), who had a different tactic, but really still has not provided any resolution to the table other than Navy Federal is willing to 1 ) keep my complaint within the mortgage department, 2 ) not forwarded up to the executives, and 3 ) give me a new processor. This person also explained that the investigation into my complaints of discrimination were not founded but could not really give me any more information other than reciting the XXXX XXXX XXXX XXXX XXXX on discrimination. It has been a total of about three weeks now since the resolution has been occurring, however at every turn, I am the one who suggested that they first remove that loan officer who is STILL showing on my account. I also suggested that the underwriter needs to be removed, as well the entire team needs to be removed and needs to be retrained at a minimum. That has not occurred, in fact the resolution specialist told me on Friday XX/XX/2022, that executives in the Mortgage Department decided that removing the underwriter was not going to occur. Additionally, when I question their solution of providing a new processor ( my question to them was if I never needed an old one and didn't know I had one, how do I know the new one exactly is exactly new? ), I was told this is what was decided to be the appropriate resolution. 
I find their responses to this entire situation completely UNSATISFACTORY! I have stated repeatedly what this looks like to me ; Either they were GROSSLY NEGLIGENT AND/OR GROSSLY DISCRIMINATORY in their practices. I am highly disappointed with every single facet of how Navy Federal has chosen to show me that I am truly not a valued customer of theirs. To be sure I was not overthinking I have asked about their processes and pleaded with them to help me understand because 1 ) I do not know that this has not happened to other families/thousands to millions of sailors, veterans, customers that did not know the rules. NFCU has not said anything that has led me to believe that they have changed their policies, conducted training, or done anything differently since they were aware of this issue. Furthermore, they have not in any capacity explained to me what it is they've done to verify that this is not a case of discrimination. A company of this size should have better policies in place besides we are going to take this as a teachable or coachable moment. Basic customer service should dictate that anyone attached to my issue that I deem may be XXXX or biased, or completely ill-equipped to do the job they are assigned, should have been immediately removed to include the catalyst, also known as the underwriter, that did not know what current policies are. Additionally, other than possibly assigning a new processor, what have they done?! After three weeks, I dont know and couldnt tell you or anyone else. I even suggested that maybe if wrote an official letter, signed by an executive from their headquarters, stating that they heard my complaint and informing me of what their plan was to regain my trust and protect others, then maybe we could move forward where I was willing to keep them as my financial institution ( not lender ). I explained that this letter did not have to have their internal processes, which I know would be secret because I do not work for their company. I stated this has been my financial institution for the last 20 plus years and I chose not to go to social media ( at the time ) or officially complain outside the confines of NFCU because I wanted to believe this was a simple mistake but was finding it very difficult to see this situation as a simple mistake. Navy Federal has repeatedly shown me that they could care less and told me that the letter may take some time if it is written because it has to go through several different departments and an executive. When I asked, how does the letter go through different departments before it gets to an executive, but the complaint does not, I did not get an answer that made any sense.

My issues remain 1 ) Navy Federal believes that I should be able to move forward and be okay because my potential loan was not affected ; 2 ) Navy Federal does not appear to be concerned that their gross negligence has affected millions of other families ; 3 ) There is nothing they have said to lead me to believe that they even care that their practice of shooting from the hip when it comes to lending my be rooted in biases ; 4 ) Navy Federal have chosen to disengage and treat this entire process as if it is less serious or a joke.

I have zero desire to speak to anyone in the Mortgage Department or related to the mortgage department and I have stated that emphatically. I do not believe NFCU is willing or is trying to conform to the VA limits which I kept pointing out that they could not legitimately get through the VA lenders checklist for underwriting without getting to line item 2, which mentions the Certificate of Eligibility ( COE ) that clearly states my entitlement. This is why I believe this may be a case of discrimination ( microagression ).

Thank you for your time and consideration.

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