Consumer complaint received 2015-08-12
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Credit decision / Underwriting — 
Company: PENTAGON FEDERAL CREDIT UNION (TX)

I applied for a PENFED FCU mortgage loan in XXXX 2015. The processing could be viewed as likely unethical at best or PENFED FCU actions could be viewed as engaging in both unethical business and possible forms of racketeering/corrupt/RICO. 
After applying for a loan I was provided feedback in Good Faith Estimates and Truth documents that listed my requested mortgage terms. I also followed up with both contracts showing my mortgage requirements to provide, discussed with the PENFED FCU loan officer the required rate and signed a notice to proceed with the loan at the agreed loan interest rate of 2.75 %. I clearly communicated and received follow up from PENFED that they understood the rate required. 
Throughout the 60 day process there were many issues and errors by PENFED FCU. The one thing that was constant was the financial terms expressed both in contracts and discussions with PENFED FCU. 
Multiple documents throughout the process show the mortgage terms remained as requested. What should be reviewed as both unethical and corrupt is how PENFED FCU holds a person hostage to increase the mortgage rate at the last minute. 
My closing was set for XXXX XXXX per contract and PENFED was fully aware. They missed this date and were to have all documents to the Closing Agent on XXXX XXXX for a XXXX XXXX closing or I faced a contract breech. 
During the afternoon of XXXX XXXX, PENFED FCU emailed me the final approval including my final GFE and TIL document that showed the finance terms that had existed from the start and in all communications with PENFED FCU. 
I agreed with the closing documents PENFED FCU provided on XXXX XXXX and was set for Closing on XXXX XXXX. On XXXX XXXX at XXXX I received a call from PENFED FCU XXXX stating that my paperwork was not approved and I did not have a loan package ready to go to the closing agent. They said my rate was not locked. After a discussion explaining the emails, discussions with PENFED employees during XXXX, XXXX on the required loan rate that I wanted to have from my original application and PENFED was fully advised of what rate to lock in on my application, PENFED stated they would try to get a Mgmt override approval on XXXX XXXX or I could accept a new loan rate that was higher. I noted that the package had to be at the Closing agent by XXXX on XXXX XXXX so that I would not breech my contract if the closing did not happen on XXXX XXXX. 
On the morning of XXXX XXXX Penfed FCU told me that they did not know when a review would be completed and if I wanted to complete the closing package I had to accept a higher rate. The only feedback given was my case was under review for the original loan rate that had been discussed and requested in all communication from XXXX until the phone call XXXX on XXXX XXXX. PENFED stated my only choice was to take a higher rate if I needed the package by noon and they knew I did not want to risk contract breech. PENFED also stated the rate had gone up again that morning and the interest rate was higher than what was quoted at XXXX on XXXX XXXX during the phone call. Basically PENFE confirmed the requested rate all along, had communicated it several times over the two months including the final GFE and TIL and then pushed me into a no win last minute change situation. Penfed raised the rate from 2.75 % to 3.125 % in the last hours before a closing package was required knowing I was facing a contract breech. Others with PENFED FCU closing issues should be interviewed as this has possible CLASS ACTION status.