Consumer complaint received 2022-02-17
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: NAVY FEDERAL CREDIT UNION (CA)

Dear CFPB, The following details describe how a {$60000.00} charge was added to our refinance the day before the application expired, despite written assurances, including the Loan Estimate ( LE ), that the lender would waive this cost. 

We started a refinance application process with our current lender, Navy Federal Credit Union ( NFCU ), on or about XX/XX/XXXX. Our current mortgage balance was approximately {$730000.00}. And we had previously been on Covid forbearance, which deferred about {$60000.00} in additional payments. Our lender first issued a LE in approximately early XXXX of XXXX for a loan of approximately {$810000.00}, which included the principal, deferred payments, and closing costs. However, we expressed that may not be interested in the loan at those rates and closing costs if we were forced to refinance the deferred Covid payments in addition to the principal and we had planned to look elsewhere for better terms. 

At this point, our Loan Officer ( LO ) from NFCU stated that he would run this up the ladder to see if we could be given a better deal and stick with NFCU. After approximately another month, our LO indicated he had consulted with management and they decided that if we were to refinance with them, they would waive the {$60000.00} in deferred Covid payments. This email exchange is included here. On XX/XX/XXXX, NFCU issued us a new LE for approximately {$750000.00} ( $ XXXX principal plus closing costs ) and we agreed to proceed. That LE is provided here. 
Throughout the rest of XXXX and XXXX we continued to ask about the status of our loan. We had promptly submitted all requested documentation but we did not hear from MFCU for some time. In XXXX, they contacted us and told us things were delayed because they had an excess of mortgages applications to process compared to their usual level. 

Our application was set to expire on XX/XX/XXXX. On approximately XX/XX/XXXX, we were contacted by NFCU saying they reversed their decision about waiving the covid deferment payments that and we would have to come up with {$60000.00} by the next business day. They reissued their original loan estimate for {$810000.00}. 
We have been trying to work out a solution with NFCU but they appear unwilling to budge. We have explained the facts of the situation, which they do not appear to dispute. They just say they changed their mind. However we are a severe disadvantage now in shopping around because interest rates have gone up substantially since XXXX. We offered a compromise that wed refinance the whole amount if they give us a slight reduction in interest rate and waive closing costs. They followed up our offer with another email stating that we needed to come up with {$60000.00} cash, effectively declining our offer. 

NFCU is our current mortgage lender and knew full well our balance. There was no change in circumstance in XXXX of XXXX that would justify their adding {$60000.00} to their XXXX LE. What did change is that now we are in no position to bargain or look elsewhere. Receiving a surprise {$60000.00} charge with one business day notice is a textbook example of why consumer lending laws exist. Thank you for your help in resolving this.