Consumer complaint received 2025-11-01 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Confusing or misleading advertising or marketing
Company: NAVY FEDERAL CREDIT UNION
State: CA

Complaint narrative:
My husband and I are reporting Navy Federal Credit Union ( NFCU ) for misrepresentation and unfair lending practices related to their No-Refi Rate Drop / Streamlined Rate Reduction ( SRR ) program. We were led to believeboth verbally and in writingthat this program allowed us to lower our mortgage interest rate after six on-time payments by paying a small administrative fee, using the same discount-point structure shown on NFCUs rate sheet at the time of our original closing. 

Timeline of Events : XX/XX/XXXX : Applied for a home loan with NFCU after being informed of the No-Refi Rate Drop program, which was a deciding factor in our choice to finance with them. 
XX/XX/XXXX : Entered escrow and closed on our home at 6.00 % interest rate with XXXX discount points ( 1 % origination + XXXX points ). 
XXXX XXXX XXXX : Communicated with NFCU loan officer XXXX XXXX, who confirmed in writing that the Streamlined Rate Reduction was inclusive of all adjustments. I asked for confirmation that, when rates dropped, we could lower our rate according to NFCUs rate sheet with the same XXXX discount-point structure we paid at closing. He confirmed this understanding in writing, stating they could not share internal documentation but affirmed the structure verbally and by email. 

The Issue : When we became eligible ( after six consecutive payments ), NFCUs SRR team refused to honor the rate structure described to us. 
XX/XX/XXXX : We called NFCU when rates on NFCUs rate sheet were approximately 6.25 % ( XXXX points ) or 5.625 % ( 1 % fee + XXXX points ). 
Instead, the SRR representative quoted a single internal dashboard rate of 6.375 %, explaining that this internal rate differed from the rate sheet. 
This internal dashboard rate is not disclosed anywhere on NFCUs rate sheet and materially alters the programs value. 
Recent Follow-Up ( Fall XXXX ) : When NFCUs own rate sheet reflected market rates around 5.875 %, SRR rates still exceeded 6 %, with NFCU again claiming their internal system governs SRR rates . 

Several representatives acknowledged that other members have complained about the same discrepancy. 

Why This Is Misleading and Harmful : We relied on explicit written confirmation from an NFCU employee that our SRR would mirror the discount-point structure shown on NFCUs rate sheet. 
NFCU changed internal rate-calculation rules after our loan closed, without notifying existing borrowers. 
The current internal dashboard rate system contradicts NFCUs advertised No-Refi Rate Drop promise and constitutes an unfair and deceptive act under TILA and UDAAP ( 12 U.S.C. 5531 ). 
We delayed refinancing elsewhere, resulting in substantial opportunity cost and interest overpayment based on this misrepresentation. 

Supporting Evidence : Email correspondence dated XX/XX/XXXX between myself and loan officer XXXX XXXX. 
NFCU rate-sheet screenshots from XX/XX/XXXX and subsequent dates. 
Call logs and notes of SRR representatives acknowledging rate discrepancies and member complaints.

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