Consumer complaint received 09/23/2016 about Mortgage (FHA mortgage) with NAVY FEDERAL CREDIT UNION (FL).
Issue: Application, originator, mortgage broker

Complaint: I am writing to follow-up regarding several issues that I believe were handled inappropriately and unethically by Navy Federal Credit Union. My husband and I were approved for an FHA loan through Navy Federal for a home ( New Construction ) in XXXX XXXX, Florida. We have been working with our loan officer, XXXX XXXX and Closing Agent, XXXX XXXX for numerous months. We completed all the needed documentation in preparation for closing. We were told by the builder, XXXX that the property was complete on XX/XX/XXXX and that we should contact our lender to order the final appraisal. XXXX informed us that the final appraisal was ordered on XX/XX/XXXX. We received an e-mail from her indicating that she would be on vacation the week of our scheduled closing. My husband spoke with her on the phone XX/XX/XXXX and we were told that the final appraisal was complete and we received an e-mail on XX/XX/XXXX indicating a " clear to close ''. No stipulations were placed indicating that any outstanding information was needed. We were told by XXXX via e-mail that we would receive a call on XX/XX/XXXX and we would need to respond to the disclosures by XXXX My husband received a phone call from XXXX XXXX after XXXX on XX/XX/XXXX indicating that we would not be able to close on XX/XX/XXXX as scheduled as the bank did not have an appraisal. We were then forwarded to a supervisor, XXXX XXXX, who also indicated that we would not close on XX/XX/XXXX as the bank had not received the final appraisal. We were very confused and we repeatedly indicated that we were told that the final appraisal had already been received. She indicated that they would do everything to get the appraisal as soon as possible. She indicated she was doing everything she could and would call us back after speaking to her supervisor. When she called us back she indicated that if we send a " Hold Harmless Letter '' that we could still close if the appraisal was received by the morning of XX/XX/XXXX. We forwarded the letter. We continued to call for regular updates. However, it was not until the evening XX/XX/XXXX when XXXX XXXX told my husband that they had received the final appraisal in a timely manner but it was not on a form acceptable for FHA and this was in fact the hold up. She had clearly left out this key piece of information in our earlier conversations. 
It appears to me that some discrepancy is not being shared with us regarding the final appraisal. Ethically, is the bank required to share the reason for the problems with the appraisal? For example, did the home not appraise for the anticipated value? If so, does the bank have an obligation to share this information with the customer? We feel that representatives from the bank were fully aware that appraisal was received on time and that there was a problem regarding the appraisal. Additionally, there was no follow-up by the bank until the last minute to ensure that the documentation was correct is an issue demonstrating unprofessionalism. I feel that ethically some violations have occurred on the part of NFCU thus the reason we were asked to sign the " Hold Harmless ''. We were told different stories at different times by XXXX XXXX. If we knew that the paperwork was in fact received, then we would not have been manipulated into signing the " hold harmless '' letter. 
Lastly, the bank transferred nearly XXXX from my bank account on XX/XX/XXXX to the title company for the closing. To date my husband and I have no further information regarding closing or the status of the appraisal or the status of my funds. For example, how long will the funds be held? 
There are clearly some larger issues happening with the appraisal that have not been shared. We would like an honest assessment from Navy Federal Credit Union about the status of our closing and whether they will be able to close the loan.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation