Consumer complaint received 2016-12-13
Product: Mortgage — VA mortgage
Issue: Settlement process and costs — 
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION (GA)

I contracted with USAA Federal Savings Bank to refinance my existing 30 year, fixed rate, VA mortgage held by XXXX. USAA provided a competitive rate and agreed to pay the closing costs ( including the VA funding fee ) for the loan. Additionally, I am a long time, loyal USAA member with multiple products including auto insurance, homeowners insurance, life insurance, and primary banking ( deposit accounts ). 

The loan closed on XX/XX/XXXX at my home ( XXXX, GA XXXX ) with XXXX ( USAA 's title company ) and XXXX performing the closing. XXXX, Esq. handled the transaction personally. 

The loan was set to fund on XX/XX/XXXX and XXXX was to be paid off. As of XX/XX/XXXX, no payment from USAA, XXXX, or any of its associates has posted to XXXX. I have a payment to make to XXXX no later than XX/XX/XXXX at XXXX to keep my mortgage current. USAA expects a payment on their loan XX/XX/XXXX. I have a perfect repayment history on all debt and am now faced with XXXX mortgage payments. 

To attempt to resolve this issue ( which for the record was noted by me, not anyone internally at USAA or their affiliates ) I contacted USAA 's servicer XXXX the week of XX/XX/XXXX. The XXXX rep. told me that " it will post, sometimes it just takes awhile '' or something to that effect. I continued to check my XXXX statement daily. 

I contacted the mortgage processing team at USAA early the week of XX/XX/XXXX and was informed by USAA that they never released the funds to the closing attorney. Funds were supposedly released to the closing attorney on XX/XX/XXXX and wired to XXXX on XX/XX/XXXX. As of XX/XX/XXXX, nothing has posted to my account. I have personally called XXXX, been in contact with multiple reps from USAA, as well as XXXX and his team and this issue is yet to be resolved. XXXX says they never received payment, XXXX says they sent it, etc. 

Regardless, the payment USAA sent is not a full payoff as the payoff from XXXX expired by the time they " sent '' the money. USAA has agreed to pay the per diem interest charge from XXXX for the days between when the payoff expired and when they actually made the payment. They acted like this was a favor to me .... What is unclear is how that money will be paid out - the USAA rep. from their complaint resolution department called the " Office of the CEO '' - XXXX - has been unable to explain this. 

Currently, I have XXXX mortgages against my house as a result - XXXX with XXXX, XXXX with USAA ( XXXX servicer ) totaling over {$780000.00}. My escrow balance refund from XXXX ( ~ {$1900.00} ) has been delayed multiple weeks. I have spent countless hours ( actually about 10 total at last count ) running down this issue. I need resolution to this mortgage issue, compensation for my time and trouble, and most importantly, USAA should be disciplined for running such a poor process. 

I will make all payments ( e.g. my XX/XX/XXXX payment to XXXX ) required and hope refunds will be credited as I do n't want to adversely affect my credit ratings. 

Many USAA members would not catch this on their own and would be left holding the bag for the broken processes and lack of systems and controls employed by this bank. I know the USAA membership - they were my sailors when I was XXXX. USAA prides itself on being a member driven organization, but is leaving incredible risk and exposure to their membership through irresponsible practices and lack of controls.