Consumer complaint received 2016-01-02
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Application, originator, mortgage broker — 
Company: PENTAGON FEDERAL CREDIT UNION (MD)

In XXXX of 2015, I applied for a mortgage refinance loan with Pentagon Federal Credit Union, the same way as which I had done with the same company for the same loan account in the past. Within a couple days, I was contacted by a representative who gathered additional information and started the process. Soon after I was sent a " Good Faith '' statement which had estimated settlement charges of {$6100.00}. A few weeks went by and I heard nothing. I contacted the loan processor who e-mailed me a request for several documents ( 2 years of federal tax returns, pays stubs, bank account info, ect ... ). I provided the documents. Many weeks went by again without PenFed contacting me. I contacted the loan processor to inquire about the status. The processor stated she had difficulty opening the documents that I sent even though they were sent in the exact same format as documents the processor had sent to me. After sending the same requested documents several different ways, the processor advised me that the they were able to open them and everything was fine. A week passed without contact and I contacted the processor regarding the status. She stated that I needed to contact their title company. I responded that their title company should be contacting me because I had no Idea of who they used. On XXXX XXXX, I received a call from the title company they had decided to use ( PenFed XXXX, XXXX ). That representative stated that they could not see where I had paid off a mortgage loan from XXXX XXXX Loans for the same house 10 years ago. I advised them that I had refinanced the home twice before with PenFed and this issue had never come up. They stated they had problems in the past with documents not being filed correctly during PenFed 's restructuring and their documents regarding my previous loans with them may have been lost. I was asked by the rep. to produce a document from 10 years ago. I advised them that I did n't have those documents. They stated they would continue their search. more weeks passed. On XXXX XXXX, I again sent my loan processor an e-mail regarding the status. I soon after received a " Good Faith '' statement with a different estimated settlement charges of {$8200.00} for me to review and sign during closing. No other correspondence was sent regarding when and where closing would take place nor the extra {$2100.00} increase in estimated settlement charges. If anything, you 'd think this amount would have gone down! I again e-mailed the processor. On XXXX XXXX, I received a phone call from the PenFed processor 's supervisor who stated the delay in my refinance was because of the title company not being able to verify that I had paid off the home loan originally with XXXX 10 years ago. I advised the supervisor that I had refinanced the same home loan on twice before with PenFed within that 10 years and had never had this issue come up. The supervisor stated that they are stricter now an in the past they probably just looked the other way, but they cant do that now and if I ca n't come up with the document ( Certificate of Satisfaction ) from XXXX XXXX XXXX showing the original loan was satisfied, PenFed would not be able to refinance my loan. I replied to the supervisor that it sounded more like PenFed did not want to give me the loan because I locked in at a lower rate and the government just raised interest rates. This ordeal is still continuing and we are now approaching 4 months! In the past it has only taken a couple weeks to do a refinance with the same company. PenFed. Are there not a time limit that governs institutions with processing these type of loans???