Consumer complaint received 2021-07-10
Company: NAVY FEDERAL CREDIT UNION
State: MA
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
My husband and I are in the middle of a home purchase with a closing date of XX/XX/XXXX. WE NEED IMMEDIATE ACTION in order not to lose the house we are purchasing and/or have our deposit returned to us. In Summary, Navy Federal Credit Union provided Conditional Approval for Mortgage Commitment on XX/XX/XXXX, which was the commitment deadline stated in our XXXX XXXX XXXX. On XX/XX/XXXX NFCU retracted their financing commitment for reasons not stated in the conditional approval. We, the buyers, stand to lose our earnest money deposit because NFCU retracted their financing approval AFTER the mortgage commitment date. 

The facts of this transaction are as follows : -On XX/XX/XXXX we received pre-approval from NAVY FEDERAL CREDIT UNION ( NFCU XXXX in the amount of {>= $1,000,000} ; using this information we signed a XXXX XXXX XXXX on XX/XX/XXXX to purchase a home using a VA XXXX in the amount of {$960000.00}. 
- Our intention was to finance the mortgage 100 % using a VA loan, but the sellers asked for an earnest money deposit, to which we agreed in the amount of {$48000.00}. 
- ON XX/XX/XXXX WE NOTIFIED NFCU THAT WE HAD UPLOADED ALL OF THE REQUESTED DOCUMENTS. 
- On XX/XX/XXXX, we reached out to the loan processor to ensure that he was aware that the mortgage commitment date was XX/XX/XXXX. We have proof of this communication ( and many others XXXX. 
- On XX/XX/XXXX, NFCU requested XXXX tax returns, which we provided immediately on that date. 
- We contacted the loan processor and our loan officer many times leading up to the mortgage commitment date to check the status of the loan and were informed everything was in order. 
XXXX XX/XX/XXXX the loan processor requested a last minute extension ; the sellers agreed to a new mortgage commitment date of XX/XX/XXXX. 
- We again contacted NFCU many times leading up to our extended commitment date to check the status and were told they were waiting on tax transcripts they had requested from the IRS. 
- On XX/XX/XXXX we took it upon ourselves to access the IRS website and provided the tax transcripts directly to NFCU. 
- On XX/XX/XXXX we contacted NFCU many XXXX times, still awaiting financial commitment which was due that day. 
- At approximately XXXXXXXX XXXX on Friday XX/XX/XXXX we were given CONDITIONAL APPROVAL for our mortgage commitment. We read the list of conditions, which did not include anything that would impact our ability to purchase the home. 
- On Monday XX/XX/XXXX, we were informed that NFCU was denying our financing for reasons not expressly stated on the conditional approval letter. No additional information was received by NFCU between the dates the approval was given and the date it was retracted. 
- On XX/XX/XXXX our attorney confirmed with the sellers ' attorney that the sellers would not be returning our earnest money deposit because it was past the contractual mortgage commitment date. 
- We now stand to lose the home we are intending to purchase AND our cash deposit, through NO FAULT OF OUR OWN, as we did not have any opportunity to back out of the deal before our financing was removed.

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