Consumer complaint received 2022-01-17
Company: NAVY FEDERAL CREDIT UNION
State: NC
Product: Mortgage
Sub-product: VA mortgage
Issue: Closing on a mortgage

Complaint:
Navy Federal Mortgage Loan XXXX To Whom It May Concern, We are highly saddened by the decision Navy Federal has rendered regarding our Mortgage Home Loan. The main reasons for denial according to the letter were ( 1 ) UNABLE TO VERIFY INCOME, ( 2 ) Excessive obligations in relation to income. 
We are at a total loss for words about this because the loan was Conditionally Approved in XX/XX/XXXX, you can not Conditionally Approve someone without verifying their income! Also, our combined income is over $ XXXX. We have one ( 1 ) car payment for {$830.00} and around {$610.00} in credit card payments We also have Rental Property that we provided documentation that adds an additional roughly $ XXXX or more, which offset the above reason for denial. We appealed a decision by Navy Federal Home Loan in XX/XX/XXXX for reasons that were unfounded and in my opinion, DISCRIMINATORY based on race. The decision was reversed and we proceeded with the loan process thereafter. What transpired next is four ( 4 ) months of indescribable incompetence and foul treatment from a cornerstone American financial institution Ive ever witnessed! 
We were given four ( 4 ) different closings dates and not one time did anyone from Navy Federal contact the attorneys to reschedule, sending my wife and I emails two days before the date to cancel! now, we receive this letter a day and a half BEFORE CLOSING, IS DESPICABLE! 
We understand the process of underwriting but for ( 4 ) months the information requested was redundant and appeared as if they were searching for reasons to deny rather than assist in approving the loan. As upsetting as it became we supplied the information in a timely manner. 
During this time the sellers of the home endured many financial struggles as well. When we provided the approval and conditional approval, the sellers were embolden to take the home off the market, while still paying mortgage on another home and all utilities on the home in XXXX, NC, Losing out on potential buyers for over four ( 4 ) months! We also had to suffer through the anxiety of everything a loan process brings, but ten fold! Weve lost thousands of dollars in earnest money and all the other fees associated with the process, and are literally XXXX at the moment and frantically searching for a PLACE TO LIVE BECAUSE WE DID NOT RENEW OUR CURRENT LEASE AFTER RECEIVING THE POSITIVE NEWS OF CLOSING! We have done EVERYTHING possible. Is it money? No we make more than enough. Is it credit? No our rating range is XXXX. Is it assets? No, we have over $ XXXX between the two of us in our regular checking accounts, and retirement accounts over $ XXXX. 
Lenders have an absolute right to disqualify applicants who do not meet their requirements. However, the reason must be justifiable and undeniable in facts! .Our case can only be viewed as a CLEAR case of injustice in the highest order. 
Aside from past issues ( over 7-8 years ago ), we have been model candidates for lenders, good stable jobs, longevity, more than sufficient income, credit scores between XXXX, cash on hand, and savings! 
Navy Federal XXXX stipulated they couldnt verify income, and ITMm presuming theyre referring to the investment property? If thats the case, we began renting out the property in XX/XX/XXXX for {$2700.00} per month and reduced the payment to {$2500.00} when Covid-19 hit a year later. We gave you the addendum because after the initial ( Full Page ) lease agreement, that is customary! If you wanted to see the original agreement signed in XXXX WE COULD HAVE SUPPLIED IT, but you never asked. 
I reference this because you ( Navy Federal ) asked why is it ( the addendum ) only one page! As if were making this up!! 
You requested two years of our schedule E taxes and we gave you year XXXX and you oddly asked for XXXX? We did not rent out the property until XXXX! Secondly, the fiscal year XXXX has just ended and we can now file and have that 2nd document ( Scheduled E ). 
However, the another form of verification of funds is through the Bank Statements we provided which clearly shows the payment history EACH MONTH OF {$2500.00} FOR THE PAST YEAR!! They didnt verify because THEY SIMPLY DID NOT WANT TO APPROVE THE LOAN and tried to find every reason NOT to based on the absurdity in the redundancy documents requests! 
If its none of the aforementioned what are we left with? We will seek counsel and report this to the FTC, HUD, and other agencies to protect our rights for we have suffered financially and emotionally during this period. 

cc hud.gov consumer.ftc.gov justice.gov

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