Consumer complaint received 2020-10-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: NAVY FEDERAL CREDIT UNION
State: VA

Complaint narrative:
This letter is in regards to my experience with Navy Federal Credit Union. This letter will detail the lies, deceit, poor customer service, all together disregard for members by Navy Federal Credit Union. I believe that Navy Federal does not meet minimum standards as set forth by The Federal  Reserve Board, CFPB, and they need to be investigated so that they do not continue to harm XXXX employees, XXXX XXXX XXXX sailors- both enrolled and officers, and ordinary citizens. 
I have been a XXXX XXXX  directly serving XXXX families for more than 6 years, my husband is a XXXX Employee for the past 2 years. Of course, when we bought a house XX/XX/XXXX we got a quote from Navy Federal. At the time this rate was the best we found. We were worried, when we had difficulty contacting Navy Federal, that the closing would not occur on time- however thankfully it did. 
XX/XX/XXXX, we noticed that rates were starting to lower. A coworker of XXXX got a fantastic rate with XXXX XXXX  XXXX XXXX  for a refinance. We applied and also got a fantastic rate that would save hundreds of dollars per month on our forever home. We also felt that we did not want to move from Navy Federal. We reached out to our previous contact at Navy Federal and he said that we should really submit the rate from XX/XX/XXXX and see if Navy Federal would rate lock- he said they  had a policy where if they could not, they would pay {$1000.00} towards closing. With that information we applied for rate match. 
From the beginning we had a very hard time getting in contact with Navy Federal. They were not contacting us even though we had submitted. I personally called more than 10 times, my husband probably the same number of times, and eventually someone wrote to us that they needed more information. We sent the information then again called repeatedly and emailed trying to get a response. At this point, we were about to lose  our rate lock with XXXX XXXX, and we were worried. All in all it took more than 3 weeks for Navy Federal to provide us with a rate.

Eventually, someone from Navy Federal called XXXX and told him that they were able to match it. XXXX told the person he was speaking to that he wanted to see a copy in writing. The Navy Fed employee wanted XXXX to accept the match right there on the phone, XXXX said he wanted to look at the rate in writing and see the details. 
It was a good thing he said that, because the match we received included over {$8000.00} in points that were not disclosed to us over the phone. Again we started writing and calling trying to get more information and to ask them why we were having over {$8000.00} in points added to the mortgage- XXXX XXXX  did not have any points. I was shocked that Navy Federal had called this a rate match and tried to slip this under the table. I feel like Navy Federal intentionally lied to us in order to get an additional {$8000.00}.

Eventually, after many unanswered calls ( at this point I had called Navy Fed over 20 times and have never at any point had the chance to actually speak with Navy Federal ) and emails, we are sent a second estimate  which has the slipped in {$8000.00} in points removed completely, with no explanation. I again asked to speak with someone over the phone, by email. Even without the {$8000.00} in points Navy Feds fees are higher, and I wanted to speak with someone over the phone about it and see what could be done. I was never able to speak with someone over the phone, no one ever called me back. I did speak with a supervisor one time who said that they didnt have any of my documents that they would review them and call me back. They never did.

At this point I submit a XXXX XXXX XXXX  complaint because I did
not know what else to do. I was at a complete loss.

Someone from the escalation team called me and refunded our credit report fee. I did appreciate that, however his overall message was that the Navys Feds fees had no room to change. With regards to the rate given to us with {$8000.00} in points which was called a match- he told us this was a computer error and that this should never had been presented to us. The rate we had received was all they could do. I asked him about the {$1000.00} match, he said that because the rate was met- we did not qualify. I asked for details several times on this policy, he sent none. He also communicated several times that Navy Fed employees
had tried to call me and I was the one who was not answering the phone. This is false. I have no missed calls from Navy Fed employees during this time, I practically sat by the phone waiting for them to call ( XXXX  ). I was insulted and asked to speak with a supervisor. 
XXXX emailed me. She shared some details about the mortgage process, and I gave her our latest rate lock with XXXX  XXXX  ( by this  time rates had decreased again XXXX. XXXX shared that Navy Feds rate remained the same. I also asked her about the rate match program and asked for information she did was also unable to send any written communication. 
After our loan closed with XXXX XXXX  XX/XX/XXXX, I contacted Navy Federal and asked how to submit our loan for the rate match program.  Since our rate with XXXX XXXX  was 2.75 %, and Navy Federals rate given to us was 2.8 %, this seems clear that they did not meet the rate match guarantee in which we were told about, however given no written information even though we asked. 
XXXX eventually emailed me back saying because we locked a rate with Navy Federal, we did not qualify for the rate match guarantee. She sent a document containing paragraphs of rules surrounding the guarantee. I was shocked. First of all, if there were so many rules regarding the rate match guarantee, why werent they sent to us in the first place? Why werent they sent when I asked for the information? XXXX  response to this was that she did not know the rules originally  and needed to look them up. XXXX is a supervisor of the escalation team at Navy Federal and even she did not know the rules- but she expected a member to look them up. She said that these rules were listed on the internet and therefore we should have known. She also said that even if she had informed us, it still would not have mattered, we did not qualify due to the date of our rate lock.

Then secondly- When did we lock a rate? I was never spoken to about this ( even though I called endlessly trying to contact someone ). My husband would not accept a rate lock without speaking with me- this is a big decision. I asked for some written document showing we had  accepted. XXXX had none. She said an employee of Navy Federal,  XXXX, had spoken to my husband XX/XX/XXXX and ( from notes ) said that XXXX verbally presented the offer to XXXX, XXXX said he accepted the rate match/lock and that he wanted a copy in writing. Speaking to my husband he said he asked more than 5 times to see the match in writing and XXXX said repeatedly that there was no downside to accepting the lock and that XXXX should accept the lock. XXXX said he continued to ask for the match in writing. XXXX said several times that Navy Fed was able to match the rate. Eventually what was sent, after this phone call, was the rate including {$8000.00} in points. Note that this rate was told to us by the escalation team to be a computer error that should have never been given to us. Can a member even accept a rate given in error? The answer, obviously, would/ should be a resounding NO. The only rate we received on this date was this one. 
XXXX said that she would research my how the rate lock occurred, eventually she responded to us saying that because XXXX sent us an email stating As requested, I have had our pricing team accept the rate match and create the new Loan Estimate. You may view it online, I will also attach below for convenience. Now that you are conditionally approved, your processor XXXX XXXX will be taking over. Because XXXX sent this, and we did not ( in XXXX view ) oppose this statement, we accepted the rate lock. I think this is poor banking practice and this is against the law. I did not understand what XXXX was saying, however, repeatedly via email and on the phone I stated repeatedly my dissatisfaction with the rate and specifically the {$8000.00} in points that were never discussed with us. I have more than 10 emails from both me and XXXX stating that we disagree with this {$8000.00} in points. 
I would like to know if Navy Federal has EVER paid this rate match guarantee. I do not believe they have, as they have no process to even have a member apply for it.

I believe that we are due the {$1000.00} rate lock guarantee and that Navy Federals poor and illegal business practices need to be investigated immediately. As a consumer, we deserve better when it comes to such a large- often times the largest finance decision- of many peoples lives. Navy Federals mission statement is our members are the mission.

In our situation, we are two people who have dedicated our lives to  assisting the XXXX, we pay our mortgage on time, we wanted to trust and rely on Navy Federal as our bank, we got burned. Navy Federal takes advantage of members.

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