Consumer complaint received 2024-06-24
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — Delays in the application process
Company: NAVY FEDERAL CREDIT UNION (NE)

In XX/XX/year>, my wife and I applied to open a HELOC with Navy Federal Credit Union ( NFCU ). Our assigned loan processor, XXXX XXXX, would continually add new document requests without much explanation and caused continuous delays by not setting up the document intake for my wife ; it was almost 3-4 weeks of delays before her supervisor, XXXX XXXX XXXX had to get involved ( at my request ). During a call with XXXX XXXX, I expressed my frustrations with the loan approval process and she stated that, since I was a small business owner, it was the most difficult and lengthy process to get a loan approval. I told both XXXX XXXX and XXXX XXXX that I felt NFCU was engaging in credit discrimination and unfair lending practices by making it intentionally more difficult for a XXXX Veteran Owned ( XXXX ) small business owner to obtain financial instruments from their credit union. The matter was escalated to XXXX XXXX and XXXX XXXX. XXXX XXXX apologized for lengthy delays and stated NFCU generally tried to get HELOC loans closed and funded within 30-days, which was not happening on my loan request. After providing more paperwork and more statements, NFCU setup to have one of their appraisers come to my home. Their appraiser arrived to my home and tried to enter my home without introducing himself or letting me know what he was doing. Once inside my home, he began acting very aggressive and hostile towards simple questions I was asking him with regards to the appraisal process and some of the construction we had going on. He aggressively stated that he was going to reduce his assessed value of my home and that could either " take it or leave it ''. Given his highly disrespectful and unprofessional behavior, I had him leave my home without finishing the appraisal. When I informed NFCU, they said they would send out another appraiser from a different company. I told them I wanted to find a new 3rd party appraiser that was not affiliated with NFCU because it was clear NFCU was targeting me for discriminatory lending and was doing everything it could to delay and ultimately deny my loan request. I was emphatic with NFCU that I believed it was coordinating with its appraisers beforehand to ensure undervaluation, which substantiated my claim of credit discrimination. NFCU stated that it would only authorize the use of it approved appraiser, which, I believe, is so it can coordinate with its appraisers in advance if it wants to undervalue a home to ultimately deny an applicant 's loan request.

There is no other was to interpret NFCU discriminatory actions against Service-Disabled Veteran Owned Small Business ( SDVOSB ) owners - to include their own admission that it is their internal policy to make lending to that class of applicant incredibly difficult and lengthy. I personally believe NFCU is specifically targeting owners, especially as it clearly sent a highly aggressive appraiser to my home who openly stated he was going to under value my home. 

Frustrated, I contacted my primary financial institution, XXXX, to apply for a loan. I was approved for my loan in less than 36-hours, vice the 5-6 weeks of intentional delays with NFCU. This speaks volumes to my accusation against NFCU.