Consumer complaint received 2019-12-10
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION (PA)

To Whom It May Concern : The purpose of this letter is to inform you of my grievance with USAA Bank and to have this be settled in a proper timeframe. In XX/XX/XXXX, I received a letter from the VA stating that as a service connected veteran at the time that I took out my mortgage with USAA on XX/XX/XXXX, I did not need to pay the VA home loan funding fee, and therefore I was having that funding fee be returned to me. I contacted the VA and spoke with XXXX XXXX, and informed him that not only did I have to pay that funding fee, but since I did not have that unexpected {$3400.00}, I had to not only take out an additional loan to roll that amount into my mortgage, but I also had to accept a higher APR in order to do that. I very specifically remember originally qualifying for a 3.25 % APR, but because I did not have that extra {$3400.00} for the funding fee, I was told that I could roll that amount into my mortgage as an extra loan, but in order to do this, I would have to increase my APR to 3.75 %. Due to life circumstances at that time I very distinctly remember having to increase my APR from 3.25 % to 3.75 % due to not having that additional {$3400.00}. 

I am very grateful that the VA after six and a half years realized that their service connected veteran paid a funding fee that she was not supposed to pay and refunded me directly, but I am quite outraged by USAAs handling of this situation since I brought this to their attention. I first contacted USAA around XX/XX/XXXX and tried explaining my situation to them. To me, this is not only about a {$3400.00} refund. My time value of money has been greatly compromised, and as a service connected veteran I was defrauded by a USAA bank representative. If I wasnt entrapped by that USAA representative to have to pay that {$3400.00} funding fee, my mortgage loan would have been {$160000.00} at 3.25 % APR, which would have been a monthly mortgage payment of {$690.00}, and my loan amount today would be {$130000.00}. But as it is, my loan amount was {$160000.00} at 3.75 % APR which has been a {$750.00} monthly payment and currently has a balance of {$140000.00}. 

Through my conversations with USAA, I have spoken with XXXX XXXX, who back on XX/XX/XXXX told me that USAA would only pay me {$860.00}, representative of the interest that I paid on that {$3400.00} funding fee, which they have now acknowledged that they did receive notification from the VA on XX/XX/XXXX that I did not need to pay, when again, my closing date was XX/XX/XXXX, and I was not notified of this until the VA letter XX/XX/XXXX. This settlement amount does not represent my time value of money, and does not account for the fact that my loan amount should have only been {$160000.00} and not {$160000.00}, thereby making my monthly payment {$740.00}, even if you do not count the discrepancy in my APR. In my last email communication with XXXX XXXX on XX/XX/XXXX, I discussed that even if USAA does not endorse my claim that one of their employees defrauded me of that lower APR, the {$15.00} monthly overpayment for a loan that should have never included that {$3400.00} funding fee should also be considered in their settlement. I have yet to receive any reply. 

I hope that you take the time to consider my grievance, and you also consider my time value of money in all of this and I am reimbursed accordingly. 

Warm regards,