Consumer complaint received 2025-12-09 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: NAVY FEDERAL CREDIT UNION
State: VA

Complaint narrative:
Subject : Mortgage Servicing Errors, Harassment, and Possible Discrimination by Navy Federal Credit Union I am a XXXX, 100 % XXXX XXXX XXXX veteran with a foreignaccented English-speaking voice. I am submitting this complaint regarding XXXX XXXX XXXX XXXX ( NFCU ) servicing of my mortgage, repeated collection calls, and the way I was treated by their staff, which I believe reflects both serious servicing errors and possible discrimination based on my race and accent. 

In XX/XX/year>, I contacted NFCU because I was XXXX month behind on my mortgage due to an emergency trip out of the country for a funeral. During that call, an NFCU representative and I agreed to a repayment arrangement : I would pay an estimated additional {$350.00} per month through XX/XX/year> to bring the loan current. I relied on that agreement and have been making the agreed payments in good faith. 

Yesterday, after receiving at least XXXX calls from NFCU over the last XXXX days, I spent approximately XXXX and a half hours on the phone with NFCU. I was told that in XXXX before my XXXX repayment agreement NFCU changed the escrow or payment amounts, and that this change should have been incorporated into the repayment plan. The representative admitted this was an error on NFCUs part. I was also told, for the first time, that NFCU considered me XXXX months behind, not XXXX, and that this information was not disclosed to me in XXXX. The representative again acknowledged that the XXXX representative had made a mistake. 

A supervisor then joined the call and informed me that, despite XXXX admitted errors, there was nothing they could do to correct the situation. I was told I would have to enter yet another repayment plan and that my credit would continue to show delinquencies until the account is brought current. I was further informed that, for the last XXXX months, NFCU has effectively been running XXXX separate payment streams at once : the regular monthly payment and the repaymentplan amount. XXXX was never properly adjusted or turned off, so their internal records now show my account as out of sync. 

Because of this, NFCU has changed/cancelled the original repayment plan and my mortgage history is now reflecting XXXX or XXXX months of delinquency, even though I followed the agreement I was given. The supervisor repeatedly stated that the situation was my fault and that the burden is on me to make a new arrangement, even though I acted in reliance on incorrect information NFCU provided and their own staff have admitted their mistakes. 

Throughout these interactions, I felt I was not being treated with respect or patience. As a XXXX borrower with a noticeable foreign accent, I am concerned that I was not given the benefit of the doubt, that my explanations were dismissed, and that the supervisor spoke to me in an unprofessional and accusatory manner. I am aware that federal law prohibits discrimination in credit transactions based on race and national origin, and regulators have recently brought actions where lenders treatment of XXXX and immigrant borrowers raised Equal Credit Opportunity Act and Fair Housing Act concerns. 



My specific concerns and requests are : Servicing errors and misapplication of payments : NFCU appears to have mishandled the repayment plan, failed to integrate known escrow/payment changes, and kept XXXX concurrent billing schedules running, creating an artificial delinquency. Federal mortgageservicing rules require servicers to correctly apply payments, maintain accurate records, and timely correct servicing errors when borrowers point them out. 

Failure to give accurate and complete information : In XXXX, I was never told that NFCU considered me XXXX months behind or that the escrow/payment change from XXXX would affect the repayment plan. I was denied the opportunity to decide, with full information, how to cure any alleged default. 

Credit reporting harm tied to a servicer error : NFCU has told me that my credit will continue to reflect delinquent payments, even though they acknowledge their own representative made errors in setting up and explaining the plan. CFPB guidance indicates servicers must not furnish negative credit information for a disputed payment for a period after receiving a notice of error. 

Harassing call frequency : NFCU has called my phone at least XXXX times in the last XXXX days about this out of sync status, even though the confusion stems from their own servicing mistakes and their failure to correct the underlying account setup. 

Possible discrimination/unequal treatment : As a XXXX, foreignaccented, 100 % XXXX veteran, I believe I was spoken to and treated as if I was at fault and not credible, even after NFCU admitted XXXX own errors. Given the broader pattern of CFPB and DOJ XXXX actions against lenders for discriminatory treatment of XXXX borrowers and borrowers of XXXX, I am concerned that my race and accent XXXX have influenced how seriously my concerns were taken and how rigidly NFCU insisted on blaming me.

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