Consumer complaint received 2020-10-27 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: PENTAGON FEDERAL CREDIT UNION
State: CA

Complaint narrative:
I completed my application with the loan officer in XX/XX/2020 and was put through their automated system and was approved for a 10 % down low interest rate mortgage. I submitted all documentation requested and agreed to push out our escrow to accommodate their timeline. I was already in the approved status with another lender, BUT their officer contacted me sold me on their product and terms, so I switched to them. WORST DECISION EVER! 

We pushed out the close of escrow three times now. Two weeks before our original set date to close, they come back and say now I need 20 % down ( 10 business days before our closing date ) having made plans all along based on 10 % down and btw MOVING ACROSS THE COUNTRY. A manager then got involved and said he could do 15 %. This should have been my first red flag. 

After delaying escrow closing yet again, I finally got my closing settlement and conditions to close starting the 3 day waiting period to close. I filled my two minor conditions within an hour of receiving them. PenFed then sent an email to escrow and title to set the closing for Friday XX/XX/XXXX I wired the funds needed to close at escrow on XXXX/XXXXXX/XX/XXXX The morning of closing day, I receive a message asking for more documentation of the proceeds from the sale of my prior home THE DAY OF CLOSING. I jumped through hoops but was able to get a copy of the check from the escrow company for the sale of my home. Should have been a HUGE RED FLAG. But repeatedly I was told to trust the process, by the loan officer and processor ( who never once returned my calls ). 

All porties arrived to closing only to have no documents, needless to say we didnt end up closing on Friday. I got a voicemail that all parties listens to explain ya glitch in the underwriting system that could be fixed that night or over the weekend, etc while in the waiting room waiting for closing docs at the escrow office. I then received an email from Pen Fed saying our underwriting team is reviewing your file right now, however this will likely not be completed in time for a closing today. Your documents were received too late in the day to get a same day rush completed. 

Also on Friday I received an email from Pen Fed saying we have submitted the loan to underwriting, for a Clear To Close once that happens, a closing package will go out. Why did they give the direction to schedule the closing in the first place then??? 

Now this Monday, XX/XX/XXXX I am being told my credit history from five years ago is being questioned with regard to late pays on my credit from over 5 years ago is being brought up NOW?? Theyve had my credit report since day one and on the 11th hour theyre bringing this into play? 

All along I have communicated my documents requested, repeatedly asked if they needed anything, agreed to pushing out escrow because of delays on processing and underwriting to now be told at the 11th hour the loan may not close? 

I communicated multiple times that my furniture was being moved all the way across the country, the sellers graciously allowed us to let us move our items in on Wednesday when the truck showed up to avoid additional moving expenses AND because escrow and title had received direction from PenFed to schedule the closing for Friday XXXX. On Monday XXXX I was formally notified they would not be finding my loan due to late pays from over 5 years ago!!!! 

There are so many other examples of improprieties and misleading practices all with written proof either via email or text from the loan officer and his manager its pathetic I didnt run away and go back to my original lender sooner. 

I have since emailed their manager explaining this matter in more detail with hopes that there must be something that can be done to resolve this, as it seems highly unfair that we have gone through this process and have overly communicated and had multiple responses from different people through this process and are now in this predicament because of relying on the communications received from PenFed. No response whatsoever!!!

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation