Consumer complaint received 2015-03-25
Product: Mortgage — VA mortgage
Issue: Credit decision / Underwriting — 
Company: NAVY FEDERAL CREDIT UNION (CA)

My husband, an XXXX service member, and I applied for a VA XXXX with Navy FCU on XXXX/XXXX/15. I sent in loan documents XXXX and did not receive ANY communication until XXXX/XXXX/15. My primary concern in my repeated communication to NFCU was that our rate lock would expire before closing the loan. 

After receiving a call from processor, XXXX XXXX, a month after our application was submitted, I was told as a condition of our loan approval, that I must submit an Access Number evidencing membership with NFCU. I provided my Access Number to XXXX XXXX via email on XXXX/XXXX/15. 

I continued to email and call XXXX XXXX, and her supervisor XXXX XXXX, and express my concern at the lack of communication in the loan process. I received a copy of my Mortgage Loan Approval on XXXX/XXXX/15. I had no communication from NFCU until XXXX/XXXX/15 after calling and emailing repeatedly for status updates and again expressing my concern that we would not be able to close our loan prior to the rate expiration. 

On XXXX/XXXX/15 I was told that I needed to pay {$80.00} via credit card to update the mortgagee clause on my master insurance policy for my condo HOA. I ordered the updated insurance certificate myself since the processor failed to request the update despite me providing the information to her twice, over a month prior. 

After the total lack of action and progress on our loan application I asked our file to be escalated to a supervisor to ensure that we closed timely. 

I spoke with XXXX XXXX on XXXX who admitted that our loan was significantly delayed due to our processor being " out of the office '' and that " everyone is extremely busy. '' XXXX assured me that due to this delay, if we were unable to fund by XXXX/XXXX/15 NFCU would extend our rate for 15 days at the 3.125 % we had locked at NO COST to us. I was told the " only documentation '' we needed to close our loan was a payoff demand. I sent a payoff authorization to NFCU, and incurred a fee with my current lender to provide the payoff demand to NFCU. 

I received email communication from XXXX XXXX on XXXX/XXXX/15 confirming that our loan closing was imminent. Specifically, " if we do n't close tomorrow, we might still be able to close on XXXX and fund on XXXX. " I then received a phone call from XXXX about XXXX minutes later informing me that our loan was now declined. The reason for decline was an old NFCU account that I had discharged via bankruptcy several years ago. My credit information was fully disclosed in the loan application process, a credit report was pulled on XXXX/XXXX/15, and my NFCU Access Number had been provided a month earlier to XXXX XXXX. 

My belief is that NFCU never had any intention of closing our loan at our locked in rate. The unjustified delays and lack of communication are further evidence of the lack of effort expended by NFCU to honor their rate lock agreement. Further, the reason for denial is not a VA requirement, so conveniently, NFCU did not honor our loan approval based on their own arbitrary overlay. 

I asked for counteroffer options, such as proceeding with my husband on the loan without me, switching loan products, etc. and I was told " no, your loan is declined. '' It was made perfectly clear that NFCU has no intention of proceeding with this transaction regardless of our eligibility under the VA loan program. 

The lack of good faith and negligence exercised by NFCU in this matter has caused significant and irreparable harm to my family.