Consumer complaint received 2024-01-08 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: NAVY FEDERAL CREDIT UNION
State: NC

Complaint narrative:
On XX/XX/XXXX, my XXXX  ( XXXX XXXX, XXXX ) & I applied for a mortgage online on their website. The loan number assigned was # XXXX. We received an automated email & later received an email from XXXX XXXX explaining the process. During our application process, I uploaded letters explaining our situation regarding jobs, child support, etc. XXXX never said anything about what I uploaded. She simply referred our application to underwriting. I don't even think she read any of the attachments or I am sure she would've asked for clarification before sending to UW as a prudent worker would. 

I was then shocked to receive 2 denial package emails on XX/XX/XXXX @ XXXX XXXX  and XXXX XXXX  saying the wrong denial reasons for me. This complaint is only about my part of the application because I can't speak for XXXX 's credit. 

The denial letters indicate the 2  principal reasons for my denial as : 1. Delinquent past or present obligations & 2. Excessive obligations in relation to income. This is why I am complaining. 

# 1 - My credit is excellent. I do NOT have a single delinquency, judgment, or collection on my credit reports. So, they are clearly referring to someone else. That reason does no refer to my credit profile at all. I have almost an XXXX credit score. What delinquency are they thinking they are seeing? I only use 2 % of my credit limit on top of that. So, this is a complete lie! 

# 2 - I do not have excessive obligations in relation to my income. The only debt I have is student loan debt which normally my monthly obligation is {$0.00} per month on the Income Based Repayment Plan but now it is around {$110.00} mo ( they should be using what my loan servicer requires me to pay ; not some made up amount that they come up with based upon the balance of my student loans when I will eventually be using the XXXX XXXX XXXX XXXX  program ), a personal loan with XXXX with a payment of {$1200.00} mo., a XXXX XXXX car loan for XXXX mo, & a small balance on my XXXX credit card. I was never told my options should I pay off my credit card and car. They just denied me using someone else 's credit profile. I thought underwriting would normally give a customer their options before just kicking them to the curb, but I guess not. I could see if my credit was as they indicated, but it is the polar opposite which is why this is so disturbing to me. 

# 3 - On their denial notice, they listed my credit score as XXXX, which was even lower than my XXXX app showed when I applied. They listed that the reason my score was this amount was because of : Too Many Accounts with Balances ( untrue ), Too Many Inquiries Last 12 Months ( untrue ), Too Many Accounts Recently Opened ( untrue - literally only have 1 or 2 new accounts which are the personal and auto loan. The auto loan is almost paid off. ), Ratio of Balance To Limit On Bank Revolving Or Other Rev Accounts Too High ( untrue - My balances are EXTREMELY low on my revolving accounts. I use about 2 % of my available credit. So, I do not understand this! ) I have worked so hard to have excellent credit & to have XXXX XXXX deny me for reasons that don't apply to my credit profile is very disturbing. I pay all of my debt on time, and I shouldn't be penalized for anyone else 's credit issues. 

# 4 - The last issue that I have is when I went through their application process online, it never said that they'd be pulling my credit from multiple credit report agencies. I only applied for a prequalification to see where we stood in attempting to purchase a home together. I just found out that they pulled my credit with XXXX AND XXXX. The 2 denial notices they emailed me on XX/XX/XXXX indicated that they only pulled XXXX. I didn't give them permission to pull from everywhere just for them to still get my credit score wrong & deny me for a reason that doesn't apply to what they are even looking at for me. They need to delete that XXXX inquiry! The documents I reviewed and electronically signed did not say that they would be pulling from multiple companies. They are not transparent & this is unethical. 

This entire process has been a nightmare because they get you to go through the entire process, pull your credit, and THEN require you to pay almost {$45.00} to continue going through the process. Had I known they were going to use someone else 's credit report information after pulling mine twice and still deny me, I would've never paid them. Then to send me 2 emails at XXXX XXXX  & XXXX XXXX  makes me believe that someone was working the overnight shift and was tired which caused them to make that huge mistake on our application. 

When I decide to go through this process again, I will definitely not go through NFCU.

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