Consumer complaint received 2022-11-02
Product: Mortgage — VA mortgage
Issue: Closing on a mortgage — 
Company: NAVY FEDERAL CREDIT UNION (TX)

My husband XXXX XXXX and I began the process of refinancing our construction loan into a mortgage in XXXX  of XXXX We chose to use Navy Federal Credit Union (NFCU) because we knew that we could lock in a rate for 90, 120, or 180 days. As our construction loan did not expire until XXXX XXXX XXXX, we knew we would be able to (and we wanted to) choose a rate lock-in expiration that would put us after our construction loan terminates.

When we first called NFCU in late XXXX of this year, we worked with XXXX XXXX XXXX XXXX XXXX XXXX XXXX and explained what we wanted to do. There were various phone calls/emails between us regarding what information was needed.

On XXXX XXXX I emailed to ask XXXX to explain some of the paperwork we were being asked to sign and review because it did not make sense, specifically the cash to close. She never responded to that request. She did call us (I believe this was on XXXX XXXX) to "go over our file" per her email, but this call was mostly to let us know that we were going to be working with XXXX XXXX XXXX XXXX XXXX XXXX and that she would be sending us information to fill out/upload. I asked if I would be able to speak with XXXX prior to doing this as I was confused with the process and still felt unsure that NFCU knew exactly what we wanted to do in terms of our rate lock.

On XXXX XXXX my husband and I received an email asking us to upload additional documents for XXXX XXXX. I emailed XXXX that same morning asking if we could speak over the phone because. Per my email, I specifically stated that, "I feel like what we initially said we wanted with this loan is not happening. We keep getting told that locking in our rate happens later on in the process, but this is all very confusing. I would like some clarification." We did speak later that day. At this point, my husband I and still were no aware that our rate lock had started on XXXX XXXX  And in the multiple times that I asked, I was told that it would happen later in the process.

We continued to work with XXXX, mostly in regards to uploading documents that were requested in XXXX XXXX and setting things up for the appraiser to come out.
On XXXX XXXX XXXX XXXX XXXX XXXX  emailed my husband and I that our lock in rate for the interest was set to expire on XXXX XXXX (3 days after we received this email). I emailed her within the hour very confused because we were never asked to fill out any documents or choose our preference for our rate lock. We had been clear that we wanted it to be after our home construction loan terminates, but somebody else made that decision for us, and chose a rate lock term that ended on XXXX XXXX without our knowledge or permission.

On XXXX XXXX XXXX XXXX XXXX  central time, I received a call from XXXX stating that our rate lock was extended because there was an error on their end regarding the way something was input. I questioned her about this extension because I did not want any issues to come up before we closed on the re-finance. She let me know that there would be no issues. We thought everything was resolved until I received an email on XXXX XXXX XXXX XXXX XXXX central time when XXXX  emailed my husband and I that our rate lock in had in fact, not been extended. In her email she stated that NFCU could not verify that a lock in error had occurred at the time of the initial lock and that it was time stamped on XXXX XXXX She also stated that where it became unclear was whether or not it was explicitly stated to us that we would be locking in the rate and/or where the misinformation of extended rate locks being set up later in the process originated.
I emailed XXXX as soon as I read that message and replied at XXXX, letting her know that I was confused and did not understand what was happening. I explained again that I had asked several times about the rate lock, but nobody had asked us to choose the term of the rate lock extension. I also explained that I was unaware that it was initially locked in on XXXX XXXX, and that whoever had done that had done so without asking us. I also let her know that throughout this loan process I questioned several times whether NFCU knew what our intentions were in regard to the loan, and that her email confirmed that they in fact did not understand what my husband and I tried to do initially, which was to lock in a rate that would end after XXXX XXXX I also asked her where I could file a complaint regarding the lack of transparency that NFCU had shown us when locking in a rate expiration without explicitly asking us if it was okay. She did say that there was a brief discussion about rate lock options but that she never revisited that with us but that prior to that discussion there was in information in our file detailing the initial rate lock.

XXXX  called me at XXXX of that same day XXXX XXXX and told me that the email I sent was exactly what she needed as it made clear that both my husband and I were not aware of the lock in rate extension. She let me know what she was going to take this as high up as possible and make it right. We agreed that she would call me with any update.

By the following day, XXXX XXXX, I did not have any updates and I emailed XXXX at XXXX XXXX central time to see if there were any updates and also to find out what happened between the time she told me that she had gotten us an extension on Wednesday and then telling me she had not in fact done so, on Thursday.
I called XXXX at XXXX central time on XXXX XXXX because I still did not have an update. I called the general phone of NFCU and spoke with XXXX. I explained the situation and she gave me the names of XXXX supervisors. I asked her where I could make a formal complaint regarding this situation, and she directed me to send a message online. She stated that XXXX would contact me in 15-20 minutes.

At XXXX central time on XXXX XXXX XXXX called me back because she wanted to explain what had lead to the reason the rate lock was denied. I explained to XXXX that I had a meeting at XXXX central time and she stated that she would be in the office until XXXX central time and we made a decision at that time to speak after my meeting.
My husband called XXXX shortly after our phone call asking her information about the appraisal and why NFCU did not seem in a rush to get the ball rolling if she knew the extension was set to expire on XXXX XXXX (specifically because we were not aware of this until XXXX told us, because we at no time made a decision about the term of our lock in period).
I called XXXX  back on XXXX central time and she explained the process of the denial for our extension. When I asked questions about the rate lock that was made on XXXX XXXX, she told me that there were no "comments" in our file, only that it was done as the time stamp shows. She said that there are usually comments left in that section, and that it was odd that there was nothing there. I did explain that it seems unfair that a blank box without comments would be seen as proper and explicit communication with us that we were locking in a rate, even though there is email communication with me asking when we would lock it in. It seems absurd that I would be asking about when we would lock in a rate, if I knew we had already done that on XXXX XXXX  
After making an official complaint at a local branch office and one online via the NFCU on SaturdayXXXX XXXX XXXX XXXX I was contacted by XXXX XXXX  via telephone from NFCU on XXXX XXXX XXXX XXXX XXXX. He let me know that he was now assigned to our case and would be our primary contact. I described my complaint and let him know that I had also submitted a written complaint via the NFCU website. He told me he would contact me on Wednesday with an update, if not before then.

On XXXX XXXX XXXX XXXX he called me to let me know that I would be receiving a loan mortgage estimate so that they would be in compliance with regulations that require that I receive a new estimate within three days when there are changes with the loan. He stressed that I should not worry about what it said in regards to the numbers as he was still working on getting NFCU to honor the rate of 4.65%. He also let me know that he had spoken to my husband and had told him that the goal was to have everything done and we could close on Wednesday XXXX XXXX My husband  let him know that this would not work as per our construction loan, we need to be closed before XXXX XXXX. He said that outside of waiting to hear an update on the rate, his team was ready and things should be in place to close on XXXX XXXX XXXX  There were no updates on Wednesday, XXXX XXXX XXXX XXXX called me at XXXX  central time on XXXX XXXX letting me know that a decision had not been made. He said his team was working to get our rate honored and he would follow up with me first thing in the morning to update me on whatever happened on Thursday afternoon.

On XXXX XXXX XXXX at XXXX central time I called and left a message for XXXX  as I had been expecting an update. My husband and I had to call several times for updates and per XXXX at XXXX central time, the rate lock still in question. I reminded him that the reason I escalated this was because of the timeline to close. I let him know that I did not understand what was happening. He told me on our first conversation that his job was to be objective and not take a side. He has told me that on his end he is trying to have NFCU honor the rate. I explain that it seems that if he says he is working to have them honor the rate and XXXX has told us a mistake was made on their end, I did not understand what was taking so long. XXXX XXXX  supervisor called me awhile later that day XXXX XXXX  to report that the rate lock was going to be extended to the end of the month. 

The following week, the bank where we had our construction loan, sent a payoff statement to NFCU and it was then that the loan officer from the construction loan let me know that we were to close on XXXX XXXX. I did think it was odd that the information would come from her and not my loan officer. As things progressed that week XXXX  requested more documents and we gave them to her as soon as possible. By XXXX XXXX XXXX XXXX let me know that we were not likely going to close on XXXX XXXX because we still did not have a closing disclosure (and we needed to have it for 3 days). My husband and I again expressed our frustration because we had done everything that was asked of us and we were told that their "entire team" was working on it. By the next week, we still not had heard anything from NFCU. After several phone calls made by my husband and I, we finally were able to get ahold of XXXX XXXX It was then that he explained to my husband that we needed to have another inspection. He then told me that he knew we needed to have this done on XXXX XXXX XXXX, but failed to let us know until we finally were able to get ahold of him near the end of the business day on XXXX XXXX I also called to speak to the supervisor for XXXX XXXX and let a message for her to call me. As of XXXX XXXX XXXX, she has yet failed to contact me. 

On XXXX XXXX XXXX, I sent an e-message via the NFCU website as I was frustrated with how our loan was handled and how there was such poor communication in regards to what was needed. This complaint XXXX did get an email response stating that it was escalated to the appropriate parties for a response. It is XXXX XXXX XXXX and there has yet to be any response. 

When we did finally get our closing disclosure, I had to contact the title company to set everything upXXXX XXXX  told me she could/would take care of the wire transfer on two occasions. When I called to check on this, it had not been done and I was advised to do it myself. I had no problem doing that, but the concern is that had I not called, it would not have been done. It is extremely frustrating to be told something would be handled, and then not only not have it handled, but only find out because you had to call and check on things. 


The biggest complaints we have are as follows:
1. NFCU employees were not clear or explicit in their explanation to us about the terms of the rate lock (neither on XXXX XXXX or for the extension). When we first reach out to NFCU we were very confident in our decision to move forward because NFCU had the options available that we wanted to lock in a rate after our construction loan was over. It saddens me that employees did not take the time to ensure we understood what was happening, even when I repeatedly noted that I was had questions about the terms of the rate lock in and questions about NFCU understanding what we wanted.

2 It is irreprehensible that an employee would tell a member with confidence that errors occurred on their end, that they would fix it, and tell the member that it was fixed; and then walk back on that statement the following day. To not honor what you say is something I would have ever expected from NFCU. The mission of "members first" was not done here.

3. It is frustrating that NFCU employees would not be forthcoming with information that is needed, especially when the complaint was escalated on two occasions due to the time sensitive nature of closing. It should not be up to the members to have to call and email multiple times just to get answers. This frustration extends all the way up to the resolution center. XXXX XXXX told us that he would be our main point of contact and he withheld important information that we needed so that we could get a timely inspection. It made us question whether NFCU was working to retaliate against us so that the closing process would move us beyond the end of the month so that they would not have to honor the rate lock.

Over the past six weeks, we have been made aware that somebody made decisions without our explicit consent in regard to the terms of our rate lock. We were lied to and misled despite our questions regarding very specific items. This entire situation would have been avoided had NFCU been transparent and upfront when we asked questions. If it was not for us constantly asking question and escalating the situation, we would have been taken advantage of in regard to our mortgage. It is awful to think this could happen to somebody who gets tired of dealing with NFCU and gives up. 

Prior to this incident, we would have gladly and without hesitation, recommended NFCU for all of their services. I now have several reservations in recommending them to anybody due to the actions they displayed. It appears that this kind of behavior comes from the top down as we had poor communication and lack of transparency from the resolution center, down to our loan processor and loan officer. People deserve better. Members deserve better. And NFCU is better than what has been displayed to us.